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Bega Group considers the future of its peanut processing assets in Australia

Bega Group considers the future of its peanut processing assets in Australia Bega Group Food and Beverage Business Bega group

Australia’s Bega Group is contemplating the sale of a Queensland manufacturing plant with the assistance of local advisory firm Kidder Williams in the food and beverage industry.

The site in Kingaroy was acquired in 2017 when Bega Cheese purchased the Peanut Company of Australia (PCA), subsequently changing its corporate name to Bega Group in 2022 to align with its diverse portfolio encompassing cheese, peanut butter, and Vegemite spreads.

According to The Australia Business Review, a strategic review suggests that the disposal of the Kingaroy facility is the most likely option, as voiced by David Williams, the proprietor of Kidder Williams, who sees it as an opportunity for a food manufacturer to supply Bega’s renowned peanut butter and collaborate with other food manufacturers.

PCA, which operates several factories in addition to the Kingaroy plant generating annual sales of approximately A$19m ($12.5m), has drawn interest in the industry.

We have reached out to Bega Group for comments outside of Australian business hours and has also sought clarification from Mr. Williams regarding the scope of the potential sale.

In 2017, Bega’s acquisition of PCA for 83 cents a share led to the full ownership at the same price, valued at A$11.9m, reinforcing the Australian ownership of the peanut business and aiming to stimulate growth and production.

In a separate move, Bega consolidated its dairy assets from TasFoods, involving the Betta Milk and Meander Valley Dairy brands, reflecting strategic growth in the sector.

Financial results for the first half of fiscal 2024 indicated a revenue increase to A$1.73bn and a rise in net profit after tax to A$13.3m, showcasing positive performance.

Despite a loss in the 2023 financial year due to non-cash asset impairments, Bega maintained a strong revenue base of A$3.4bn, contributing to the company’s long-term sustainability and growth in the food and beverage market.

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