Australia’s Bega Group has agreed to purchase the Betta Milk and Meander Valley Dairy brands from TasFoods, a local dairy company, for A$11m ($7.1m) plus inventory. The deal also includes a royalty-free license for using the Pyengana Dairy brand for milk and cream products in Australia.
The acquisition aligns with Bega Group’s strategy to expand its portfolio of branded products and enhance its offering of local brands in Tasmania. Bega Group CEO Pete Findlay expressed their recognition of the quality and reputation of the Betta Milk, Meander Valley Dairy, and Pyengana milk brands. He emphasized their commitment to becoming a leading Australian food company and stated their enthusiasm for incorporating these Tasmanian brands into their portfolio.
TasFoods CEO Scott Hadley viewed the sale of these assets to Bega Group as an important strategic move to simplify TasFoods and strengthen its balance sheet. He highlighted the focus on delivering organic growth in Nichols Poultry and Pyengana Cheese while exploring new opportunities in high-growth food and beverage sectors.
Earlier, TasFoods sold its Shima Wasabi spices unit to local fruit business Hillwood Berries as part of its strategic roadmap. Bega Group recently faced challenges in the Australian milk market and reported a significant loss after tax, primarily due to asset impairments. In contrast, TasFoods recorded revenue growth of 11% year-on-year in the first half of this year.