MARKETWATCH
Strong finish to 2021 Corporate activity in the food and beverage industry in November and December 2021 continued to be strong. Seven transactions were announced over the two-month period.
A
SX-listed Lark Distilling Co acquired Tasmanian whiskey maker, Shene Distillery for $40 million. Shene Distiller is based at Pontville, north of Hobart. The Peter Rowland Group acquired the retail operations of Melbourne speciality coffee brand, Sensory Lab, from Salvatore Malatesta, the owner of the St. Ali coffee brand. Two non-alcoholic beverage brands announced successful capital raises during the period. Non-alcoholic spirits brand Lyre’s Spirit raised $37 million from investors with the capital raise led by D Squared Capital and Morgan Creek Capital. Heaps Normal, a non-alcoholic beer brand raised $8.5 million in Series A funding from new investors including Simon Griffiths, Bec Milgrom and Matt de Boer. Superior Food Services acquired Brisbane-based Quality Food & Beverages (QFB). QFB is a broadline foodservice distributor with a footprint across Southeast Queensland and a strong presence in the school canteen market. Earlier in December, Superior
Date
Target Name
Acquirer
Sector
18 Oct
Shene Distillery
Lark Distilling Co
Alcoholic beverages
22 Oct
Sensory Lab (retail operations)
Peter Rowland Group
Alcoholic Beverages
4 Nov
Paramount and Brunswick brands
Tempo Group
Packaged foods
19 Nov
Lyre’s Spirit ($37m capital raise)
Several investors
Non-alcoholic beverages
29 Nov
Heaps Normal ($8.5m capital raise)
Several investors
Non-alcoholic beverages
9 Dec
Quality Food & Beverages
Superior Food Services
Foodservice distribution
15 Dec
ProForm Foods (minority stake)
Harvest Road
Plant based meat
Food Services also announced the acquisition of three hospitality businesses: Zone Bowling, Kingpin and Timezone Group International. Harvest Road, a subsidiary of Andrew Forrest-backed Tattarang, acquired a minority shareholding in plant-based meat producer, ProForm Foods. ProForm Foods is an Australian innovator in plant-based meat production. ProForm Foods has invested more than $20 million in developing the taste and texture of plant-based meat to create products
that replicate the experience of eating animal meat. ProForm Food will use the investment to accelerate growth and expand its existing production facilities in North Sydney. It looks like 2022 is shaping up
to be a dynamic year across the food and beverage industry with a positive outlook for the industry, driving investor interest in the arena from both trade investors and financial investors. F Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food & beverage industry. For more information visit www .cometlineconsulting.com.au.
Commodity Outlook WHEAT – The world wheat indicator price is forecast to average US$330 a tonne in 2021–22, an increase of 23 per cent from the previous year. COARSE GRAINS – The world indicator price for barley is forecast to increase by 13 per cent to US$254 per tonne in 2021–22. OILSEEDS – World canola supply has contracted sharply, with production forecast to decrease by 7% to 68 million tonnes in 2021–22
BEEF AND VEAL – Australian cattle prices are expected to climb by 11 per cent, to 758 Ac/kg, in 2021-22. SHEEP MEAT – Lamb saleyard prices to increase by nine per cent, to 850 Ac/kg, in 2021-22. DAIRY – Milk prices to increase by six per cent, to 56 Ac/L, in 2021-22. Source: Department of Agriculture and Water Resources (ABARES), Agricultural Commodities, December Quarter 2021
www.foodmag.com.au | February 2022 | Food&Beverage Industry News 43
