Page 6 - Food&Drink magazine April 2022

NEWS
$12m penalty for Peters Ice Cream
ABOVE: APP co-founders Brendan McKeegan and Phil McFarlane.
APP: $378m protein plant
AUSTRALIAN Plant Proteins (APP), Australia’s only commercial scale pulse protein extraction facility, announced a $378 million project to build a plant protein manufacturing hub with partners Thomas Foods International and pulse and ingredient supplier AGT Foods Australia.
The South Australian site will include three plant protein manufacturing facilities supplying domestic and international markets, which will quadruple the state’s production of pulse protein to 25,000 tonnes a year.
The state government committed $65 million, saying it would unlock an entirely new export industry for the state and the nation.
The federal government contributed $113 million through the Collaboration Stream of the Modern Manufacturing Initiative.
Thomas Foods International’s group managing director Darren Thomas told Food & Drink Business that the company had been evaluating opportunities in plant-based protein products for a number of years.
“We see plant-based protein as a natural complement to our traditional product offering and its allows us to reach new markets and customers.
“It felt like the time was right and the consortium presented the right approach,” Thomas said.
The project is expected to generate up to $4 billion in exports by 2032, including to the US, South-East Asia and Europe.
AUSTRALASIAN Food Group, trading as Peters Ice Cream, has been ordered to pay a $12m penalty for anti-competitive conduct. The Federal Court made the ruling in relation to distribution agreements for ice creams sold in petrol stations and convenience stores.
The Australian Competition and Consumer Commission (ACCC) brought the action in November 2020. Newly appointed ACCC chair Gina Cass-Gottlieb said, “We took this action because we were concerned that Peters Ice Cream’s conduct could reduce competition in this market and impact on the choice of single serve ice creams available to consumers.”
Peters admitted that from November 2014 to December 2019, it signed a distribution deal with PFD Food Services on the proviso PFD would not sell or distribute competitors’ single
serve ice cream products in various areas across Australia without Peters’ written consent.
The ice cream manufacturer admitted that the exclusivity would likely see a substantial drop in competition.
PFD is Australia’s largest distributor of single serve ice creams, reaching more than
90 per cent of Australian postcodes. The Peters’ contract restricted PFD across all of Australia except for Sydney, Melbourne, Brisbane, and Adelaide, the ACCC said.
“Peters Ice Cream admitted, that if PFD had not been restricted from distributing other manufacturers’ ice cream products, it was likely that one or more potential competitors would have entered or expanded in this market,” Cass-Gottlieb said.
PFD was approached by ice cream manufacturers to
distribute new single serve ice
cream products to some national petrol
and convenience retailers. However, PFD
advised that it could not distribute those products due to its exclusivity arrangement with Peters.
Peters Ice Cream was also ordered to establish a compliance program for a period of three years and pay a contribution to the ACCC’s legal costs. It admitted that it had contravened the Competition and Consumer Act and made joint submissions with the ACCC in respect of penalties and orders.
Murray River Organics
enters VA
AT Murray River Organics’ AGM chair Andrew Monk told shareholders the final audited financial reports had not been signed due to the uncertainty of the company’s ability to operate and ongoing attempts to recapitalise the business.
“We are currently reviewing options that may provide a pathway to profit via an M&A transaction, capital raising and restructure of debt facilities that would reposition and reset the company for growth and profit,” Monk said.
Nine days later the organic dried fruit manufacturer went into voluntary administration.
At the AGM, CEO and managing director Birol Akdogan
cent decline in a low margin private label contract. Its largest private label contract decreased by $7.5 million and was expected to do the same in FY22.
The company announced more than $22 million in asset sales across 2021 and its intention to move to a “capital light” alternative. It was aiming to sell its remaining properties this year and set up long term supply arrangements, while also looking for acquisitions to expedite its growth and return to profitability.
Grant Thornton Australia has been appointed voluntary administrators and KPMG as the receiver. MRO is operating as business as usual.
said trading results were disappointing and sales targets had been optimistic.
While there was potential for branded products, the launch phase meant low margins due to a heavy reliance on price promotion, which was compounded by lower sales momentum than expected.
In FY21 it launched 30 new MRO-branded products into muesli, confectionery, and dried fruit and nut categories. MRO said retail branded product sales were up 24 per cent, and the Wholesale and Ingredients strategic procurement business was up 20 per cent.
But the growth in branded products was offset by a 25 per
6 | Food&Drink business | April 2022 | www.foodanddrinkbusiness.com.au