One of New Zealand’s leading fine food manufacturing companies, whose growth has been driven by strong demand amid the Covid disruptions, has been put up for sale.
Food manufacturing company for sale
The company has had only two owners in the past 32 years and now produces hundreds of premium products including sauces, dressings, marinades, broths, syrups, concentrates and condiments.
Its own-brand foods can be found on the shelves of New World supermarkets, in gift and specialty food stores, in incentive and reward programs such as Flybuys, and in export markets as far away. than Denmark, the United States and Norway.
However, the bulk of the company’s food is produced under contract for other New Zealand customers and sold under third-party brands.
Bayleys business broker Matt Clifford said this has positioned the company for increased demand as an essential service food producer.
âHistorically, New Zealand food suppliers have tended to have their products made by manufacturers overseas. With Covid-19, this model has been overthrown.
âBlockages, closed borders, supply chain shortages, and freight and logistics disruptions have piled up on additional costs and delays. As a result, many Kiwi food suppliers are turning to local contract manufacturing and packaging facilities.
âThe business for sale is ideally placed to capitalize on this trend. It can offer customers a complete “turnkey” solution with product development, packaging and full marketing of products suitable for food safety.
âIt currently manufactures over 120 products for 19 well-respected brands. The operation is growing and its current owners have made additional investments to ensure it can accommodate further growth, âsaid Mr. Clifford.
Last year, the company produced more than one million individual food products, or some 300 tonnes of product for distribution in New Zealand and abroad. It has seen a cumulative year-over-year sales increase of 21% over the past three years, with current annual revenue of $ 3 million and projected profits growing.
The transaction is now marketed for sale as a going concern through expressions of interest through Bayleys’ dedicated sales team.
Mr Clifford said the food production facility has been operated for 12 years by the current owners, who have invested heavily in facilities and equipment, trained personnel, food safety operations and programs, as well as the development of new products.
Bayleys National Commercial Sales Manager Jayson Hayde said the business assets covered by the sale included facilities and machinery for end-to-end food production, such as cooking vessels, bottling equipment, filling, packaging and labeling; and some 90 cubic meters of refrigerated and frozen storage. for incoming and outgoing products.
âThe company has a strong lease with renewal rights until 2026 and an owner open to discussing longer-term continuity,â said Hayde.
The approximately 1,100 square meter facility includes a processing kitchen of over 100 square meters, some 685 square meters for packaging and warehousing, offices on two levels, as well as a showroom and a shop on the ground floor. The site has 17 off-street car parks for staff and customers.
Mr. Hayde said the existing owners have continued to modernize the facility to accommodate the continued growth. They recently invested in new assets that would reduce cooking times and further increase production.
âAnother key asset of this company is its highly qualified team, made up of two experienced managers and specialists in food technology, quality control, equipment operation and maintenance, logistics, business development and sales.
âNew owners and customers can also rest assured that food safety and site compliance are well under control, thanks to state-of-the-art certifications, including an annual audit of SGS, the world’s leading inspection and certification body. “
My Hayde said the company continues to innovate, with more than 20 new products or variations in development for various brands. While Covid had focused and accelerated a trend favoring domestic food manufacturers, the industry also had to gain longer-term tailwinds.
âGlobal demand for food is expected to increase by 50 percent by 2050, while New Zealand’s own population is expected to increase from one million to 6 million over the same period.
âAs a heritage Kiwi brand with a well-equipped production facility, proven systems, established relationships, industry goodwill and intellectual property accumulated over three decades, this company is ideally set for the future.
âIt has a strong portfolio of upcoming opportunities and a comprehensive solution to quickly bring new products to market. Its business model and operation are easily scalable to capitalize on future growth, âsaid Hayde.
Detailed information is available to potential buyers subject to the signing of a confidentiality agreement.
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