Patties Foods will focus on growing its core savoury and sweet pastry business following the sale of its Creative Gourmet frozen fruit business.
Managing Director and CEO Steven Chaur said the sale of Creative Gourmet was part of Patties Foods’ ‘strategic growth roadmap’.
“Our core savoury and sweet pastry business, with our iconic food brands Four’n Twenty, Patties, Herbert Adams and Nanna’s, represents over 90 per cent of Patties Foods sales and EBIT,” he said.
“We aim to deliver profitable growth for shareholders through a strong focus on our core savoury and sweet pastry business.”
Patties Foods acquired the Creative Gourmet business in 2007 and has been delivering a range of market-leading frozen berry products to supermarkets ever since.
Following the sale of the Creative Gourmet frozen fruit business, Patties Foods will also undertake a managed exit of the Nanna’s brand of frozen fruit products sold in supermarkets, and the Chefs Pride foodservice brand of frozen fruit products sold to distributors. Patties Foods will work with all retailers and distributors on a program to exit the frozen fruit category entirely during early 2016.
The Nanna’s brand will continue to focus its efforts on the sweet dessert pastry and apple pie market that it is traditionally so well known for. The Chefs Pride brand will continue to focus its efforts on providing ingredient-based solutions to the foodservice industry.
While specific terms of the sale of the Creative Gourmet frozen fruit business are undisclosed, the sale, to Entyce Food Ingredients Pty Ltd, is expected to generate $1.8 million in proceeds and to have an immaterial profit effect on Patties Foods FY2016 result. Patties Foods will work with Entyce to ensure a smooth and successful business transition of the Creative Gourmet product range over the coming months.
The Creative Gourmet transaction is expected to be completed by the end of December 2015, subject to a number of customary conditions being met.