Australian food group TasFoods has sold its Shima Wasabi spices unit to local fruit business Hillwood Berries.
In an announcement to the Australian Securities Exchange (ASX), Tasmania-based TasFoods stated that the acquisition of Shima Wasabi in 2016 no longer aligns with its strategic roadmap implemented in 2020.
Hillwood Berries, a family-run business also based in Tasmania, has purchased Shima Wasabi for AUD700,000 ($468,453).
TasFoods, known for its dairy and meat product portfolio, expressed its active exploration and assessment of strategic options for its business portfolio.
The company stated, “The Shima Wasabi business unit is unable to scale at the appropriate level to justify being retained within the core TasFoods brand stable. We believe that divesting Shima Wasabi to Hillwood Berries provides the brand with the best opportunity for its full potential under new ownership, while TasFoods remains focused on its core product portfolio.”
At its AGM in May, TasFoods CEO Scott Hadley, who has been leading the business since October 2021, highlighted the company’s strategic plan review and refresh. Measures taken included reducing the number of brands and SKUs, and enhancing e-commerce capabilities through the launch of the new platform Boxolove.
Hadley also mentioned the restructuring of the leadership team as part of the company’s efforts.
TasFoods acquired Shima Wasabi in a cash-and-shares deal worth AUD2.8m seven years ago, foreseeing a strong growth platform for the business.
Shima Wasabi, located in Tasmania, produces wasabi, Japanese pepper, turnip, and parsley. The business supplies wasabi stems, edible flowers for restaurants in Australia, and concentrated freeze-dried wasabi powder for distribution in Australia, Asia, and Europe.
TasFoods has expanded through acquisitions, including Meander Valley Dairy, Nichols Poultry, and Betta Milk.
In the full-year 2022, the company recorded sales of AUD70.6m, reflecting a 1.6% year-on-year increase.
