Fenn Foods, the Australian alternative meat company that previously entered liquidation, has secured a new owner. In a strategic move, Smart Foods, a local competitor, has reached an agreement to acquire the significant assets of Buderim-based Fenn Foods, as confirmed by the insolvency firm Fort Restructuring.
Smart Foods has acquired Fenn Foods’ notable brands, Veef and Love Buds, along with the associated plant, stock, and equipment. While the financial details of the acquisition remain undisclosed, the deal marks a significant step for both companies.
Up to half of Fenn Foods’ 32 employees will be offered positions at Smart Foods, which operates from the Gold Coast. Smart Foods CEO Raghu Reddy expressed optimism about the acquisition, stating, “While the company has faced recent challenges, I believe in its strong foundation and the dedication of its team. By streamlining operations, fostering key partnerships, and focusing on innovation, we will solidify its position as a leader in the Australian plant-based market.”
Founded in 2015, Fenn Foods merged last year with several assets owned by another Australian entity, All G Foods. This merger led to the establishment of a new company, The Aussie Plant Based Co., where All G Foods retains a 49% stake and is now concentrating on developing dairy-alternative products.
Ken Whittingham, an advisor at Fort Restructuring, highlighted that Fenn Foods was one of Australia’s largest suppliers in the alt-meat sector. He stated that there was a significant risk of product shortages for consumers. “This, combined with the fact we are dealing with stocks of perishable goods, meant that we needed to move quickly to ensure the best possible outcome – with this transaction being completed within seven days of our appointment as liquidators, after discussions with several potential buyers,” he explained.
The liquidators are also making efforts to ensure that secured creditors and employee entitlements are compensated from the remaining company assets, as Fenn Foods Pty Ltd has ceased operations. Whittingham noted the recent fluctuations in the meat-free and plant-based sector, commenting, “The sector has gone through somewhat of a boom and then consolidation phase in recent years, and there’s no doubt that COVID shutdowns impacted important wholesale and restaurant channels for producers. However, it’s not unusual for pioneers in a young and growing sector to face challenges.”
The successful transfer of Fenn Foods’ intellectual property and innovative products for meat alternatives ensures that these developments will not be lost to the industry. As trends in the food and beverage industry continue to evolve, this acquisition positions Smart Foods well to capitalize on emerging consumer preferences within the food and drink business.
