Iconic Tasmanian brands Betta Milk and Meander Valley Dairy will be sold to NSW-based Bega Cheese, TasFoods have confirmed.
The $11 million deal is part of TasFoods strategic review to shed unprofitable businesses and reach profitability.
The sale price is lower than what TasFoods paid for the businesses in previous acquisitions – $11.5m for Betta Milk and $2.1m for Meander Valley Dairy.
It is understood the deal will see the Burnie milk plant and equipment, as well as staff, transferred to Bega.
TasFoods will retain the land and buildings on the site and lease them back to Bega.
The sale also includes a perpetual, royalty free licence of the Pyengana Dairy brand for milk and cream products in Australia and is conditional on approval from the competition watchdog ACCC and the satisfactory transfer of assets, licenses, intellectual property, employees and supply contracts.
Bega Group’s Chief Executive Officer Pete Findlay said the acquisition will improve the group’s offering of great local brands for Tasmanians.
“We recognise the quality in the Betta Milk, Meander Valley Dairy and Pyengana milk brands and we are delighted to add these Tasmanian brands to our portfolio,” Findlay said.
“Betta Milk is a fantastic regional brand that has been a household name in Tasmania for over 65 years and acquiring these brands supports our ambitions to become a great Australian food company.”
