Dawn Meats aims to acquire a majority stake in New Zealand’s Alliance Group, a prominent meat cooperative. This strategic move aligns with current food and beverage industry trends, highlighting the growing interest in international partnerships within the food and drink business.
Ireland’s Dawn Meats has refrained from commenting on a report by the Irish Times, which states that the company is the leading contender for acquiring shares in Alliance Group, surpassing the Saudi Agricultural and Livestock Investment Company (Salic). The Irish Times indicated that the bid requires a shareholder vote within the farmer-owned co-op.
Sources from the publication suggest that Dawn Meats’ offer, amounting to NZ$270 million (approximately $159 million), aims for a 70% interest in Alliance Group. A meeting for the co-op’s members is planned for August 12 to discuss this proposal.
Alliance Group, which generated NZ$1.8 billion in revenue last year but recorded a post-tax loss of NZ$95.8 million, where asked about the rumored approach from Dawn Meats. Dawn Meats, operating as Dunbia in the UK, processes lamb and beef with an annual turnover of €3 billion ($3.4 billion). The company runs 11 facilities in Ireland and 13 in the UK, similar to Alliance Group’s operations.
When contacted, Dawn Meats declined to comment on market speculation. Salic, owned by Saudi Arabia’s Public Investment Fund, had not provided a response at the time of writing.
In November, Alliance Group confirmed through its annual results announcement that it has engaged Craigs Investment Partners to explore external capital-raising options. Chairman Mark Wynne noted, “While we are at the very early stages of the process, we’ve seen encouraging interest from both international and domestic parties, but for reasons of commercial sensitivity, we will not comment on specific opportunities.”
He further emphasized that any external opportunities would be assessed based on strategic alignment and benefits for the company and shareholders. Ultimately, the final decision will rest with farmer shareholders.
In 2023, Alliance Group reported an after-tax loss of NZ$70.1 million on a turnover of NZ$2 billion. Additionally, the 2024 financial report indicated that the company faced costs related to the closure of a local facility, leading to an underlying loss after tax of NZ$47.6 million.
The loss figures included a one-time post-tax cost of NZ$48.2 million for business restructuring and other adjustments related to the Smithfield plant closure in Timaru. Commenting alongside Wynne, CEO Willie Wiese remarked that “global markets remained exceptionally challenging with prices remaining weaker as consumers continued to keep a tight rein on spending.” He also noted that sales and volumes in China’s largest market had “nearly halved,” although there was robust demand for beef in the U.S. due to a drought.
In December, following Alliance Group’s annual general meeting, the co-op expressed optimism about recovering from two challenging years. The company is forecasting a return to profitability, as described by Wynne: “Alliance has taken decisive steps to re-set the business and position the company for future success after a tough period for the global red meat sector, particularly for lamb, our largest product group.”
While the board prefers Alliance to remain a fully farmer-owned cooperative, raising the necessary capital from farmer-shareholders now appears increasingly difficult. The external capital-raising process is still in its early stages, led by Craigs Investment Partners.
In the evolving landscape of the food and drink consumer trends, this potential acquisition could reshape market dynamics and propel Dawn Meats further into international prominence.
