C11 Food Product Manufacturing

SPC bets on a fruitful ASX future

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 18-Dec-24

Shares in SPC Global closed at $1.31 on Tuesday, the stock’s first day of trading on the Australian stock exchange after raising $2.4m. The iconic fruit processing company issued new shares at $1.50 apiece following a reverse takeover of The Original Juice Company. That deal expanded the group’s product range and brands, which include SPC, Ardmona and Goulburn Valley; SPC also struck a deal to acquire the Nature One Dairy infant formula and powdered milk business. SPC’s MD Robert Iervasi says the enlarged group will have more bargaining power when negotiating supply deals with Coles and Woolworths.

CORPORATES
SPC GLOBAL HOLDINGS LIMITED – ASX SPC, THE ORIGINAL JUICE COMPANY LIMITED – ASX OJC, NATURE ONE DAIRY

SPC heads back to the ASX for the first time in two decades

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 3-Oct-24

Iconic Australian canned food company SPC has revealed plans for a three-way merger with the listed Original Juice Company and powdered milk group Nature One Dairy. SPC will list on the Australian sharemarket via a reverse takeover of Original Juice, while it will pay $50m for Nature One. SPC chairman Hussein Rifai will become chairman of the merged entity, while Original Juice chairman Jeff Kennett will step down if shareholders approve the deal. SPC had previously been listed on the ASX until 2005, when it was acquired by Coca-Cola Amatil; SPC was subsequently divested in 2019.

CORPORATES
SPC GLOBAL LIMITED, THE ORIGINAL JUICE COMPANY LIMITED – ASX OJC, NATURE ONE DAIRY

‘Significant market concentration’: Australian farming lobby calls for poultry industry code of conduct

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Original article by Aston Brown
The Guardian Australia – Page: Online : 4-Apr-24

Australia’s poultry industry is the latest sector to come under scrutiny over concerns regarding alleged abuse of market power. The National Farmers’ Federation contends that a mandatory code of conduct is needed for chicken processors, given that they have enormous bargaining power in negotiations with chicken farmers. The chicken processing industry is dominated by Inghams Enterprises and Baiada Poultry, which supply about 70 per cent of the nation’s poultry meat. The NFF’s report notes amongst other things that lack of competition and unfair contract terms are issues of concern for poultry producers.

CORPORATES
NATIONAL FARMERS’ FEDERATION LIMITED, INGHAMS ENTERPRISES, INGHAMS GROUP LIMITED – ASX ING, BAIADA POULTRY PTY LTD

Sara Lee sold to former Darrell Lea owner and race car champion

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Original article by Jessica Yun
Brisbane Times – Page: Online : 30-Jan-24

FTI Consulting received approaches from about 60 local and international parties about buying the Australian arm of Sara Lee. The administrators of the frozen desserts brand has struck a deal to sell the business to Klark and Brooke Quinn for an undisclosed price. The Quinn family had previously bought collapsed confectionary icon Darrel Lea and turned around its fortunes before selling the business to a private equity firm. Sara Lee went into voluntary administration in October 2023.

CORPORATES
SARA LEE AUSTRALIA PTY LTD, FTI CONSULTING PTY LTD, DARRELL LEA CONFECTIONERY COMPANY PTY LTD

China bans Australian meatworks at centre of COVID-19 outbreak

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Original article by Sybilla Gross
The Australian Financial Review – Page: Online : 1-Feb-22

China’s General Administration of Customs has suspended the importation of meat from Teys Australia’s meatworks at Naracoorte in South Australia. The suspension follows a recent outbreak of COVID-19 at the abattoir, which sends around five per cent of its production to China. The suspension is part of an ongoing crackdown by Chinese authorities on overseas food processors, due to reports of COVID-19 spreading through meatworks and other frozen food facilities. China has claimed that the virus disease can be transmitted via frozen food packaging, although the World Health Organization says the chances of such transmission are very low.

CORPORATES
CHINA. GENERAL ADMINISTRATION OF CUSTOMSTEYS BROS (NARACOORTE) PTY LTDWORLD HEALTH ORGANIZATION

Unions slam compulsory vaccine push

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Original article by Glenda Korporaal, Jared Lynch
The Australian – Page: 15 & 19 : 6-Aug-21

The question as to whether employers can mandate that staff must be vaccinated against COVID-19 has come under renewed scrutiny after SPC’s move to enforce a ‘no jab, no job’ policy. The Australian Manufacturing Workers Union’s national president Andrew Dettmer has criticised the fruit and vegetable processor’s lack of consultation, as well as its unrealistic deadline of six weeks for staff to get their first dose at a time when vaccine supplies are limited. Lawyers have also questioned the validity of mandatory staff vaccinations. Many Australian companies are actively encouraging their staff to get vaccinated, with some offering incentives such as paid leave.

CORPORATES
SPC AUSTRALIA, AUSTRALIAN MANUFACTURING WORKERS’ UNION

Inflation pressures are percolating: Nestle chief

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Original article by Eli Greenblat
The Australian – Page: 13 & 17 : 24-Jun-21

Nestle Australia has revealed that it recorded sales of $2.37 billion for the 2020 calendar year, up 7.9 per cent. It posted a profit of $122.6 million, up from $30.7 million in 2019, with that result having been impacted by $48 million in impairments. Nestle Oceania CEO Sandra Martinez says the company has had deal with dramatic increases in costs over the past 12 months, covering everything from coffee to shipping containers. She says its increased costs will have to be passed onto consumers at some point.

CORPORATES
NESTLE AUSTRALIA LIMITED

Bega cooks up Aussie food champ

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Original article by Simon Evans
The Australian Financial Review – Page: 1 & 28 : 27-Nov-20

Bega Cheese’s executive chairman Barry Irvin expects to achieve synergies of about $41m soon after the deal to acquire Lion Dairy & Drinks from Kirin Holdings is completed in early 2021. Bega will raise $401m from investors to partially finance the $534m deal, with new shares to be offered at $4.60 apiece. The acquisition will add milk and yoghurt brands such as Pura, Dairy Farmers and Yoplait to Bega’s portfolio, which includes non-dairy products such as Vegemite and peanut butter. The federal government blocked the sale of Lion to China Mengniu Dairy in August, deeming that the $600m deal was not in the national interest.

CORPORATES
BEGA CHEESE LIMITED – ASX BGA, LION-DAIRY AND DRINKS PTY LTD, KIRIN HOLDINGS COMPANY LIMITED, CHINA MENGNIU DAIRY COMPANY LIMITED

Bellamy’s steps up overtures to daigou traders

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Original article by Simon Evans, John Kehoe
The Australian Financial Review – Page: 15 : 18-Sep-19

Shares in infant formula maker Bellamy’s Australia rose a further 1.1 per cent on 17 September, following a 55 per cent jump on 16 September after it disclosed it was the subject of a $1.5 billion takeover by China Mengniu Dairy. Bellamy’s shares had declined 62 per cent in the 18 months prior to the offer, largely due to regulatory problems in China. Some crossbench senators have suggested the Chinese government sought to depress Bellamy’s share price to make it easier for Chinese companies to bid for it, while Bellamy’s will accelerate a push to boost the sales it makes through daigou traders.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, CENTRE ALLIANCE, AUSTRALIAN GREENS, BURRA FOODS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Bellamy’s set to be bought by China Mengniu Dairy for $1.5bn

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Original article by Eli Greenblat
The Australian – Page: Online : 17-Sep-19

The board of Bellamy’s Australia has unanimously backed a $1.5 billion takeover bid for the infant milk formula maker by China Mengniu Dairy. The transaction represents the first Chinese takeover bid for an Australian infant milk formula maker, with China Mengniu Dairy manufacturing and distributing dairy products in China, as well as having manufacturing sites in Malaysia and Indonesia. The transaction is subject to the approval of Bellamy’s Australia shareholders and the Foreign Investment Review Board.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD