Blog: Dean BestPure-play SunOpta ready to flex muscles in food

Dean Best | 16 February 2016

SunOpta is a group that spans being a B2B supplier of ingredients, a private-label manufacturer and a co-packer. In industrial minerals, the Canada-based company has also had a majority stake in a business outside food but, after finding a buyer, it is now ready to focus squarely on our sector.

On Friday (12 February), SunOpta announced an affiliate of private-equity firm Speyside Equity Fund would buy "substantially all the shares" in Opta Minerals. SunOpta owns a 66% stake in Opta Minerals.

In the summer of 2014, SunOpta revealed the board of Opta Minerals had hired Houlihan Lokey to advise it on the "strategic alternatives" for the business. Pending approval from all of Opta Minerals' shareholders, a sale of the business looks to be on.

"The sale of Opta Minerals represents a significant milestone, and we are pleased to be concluding this chapter of our company's history as it paves the way for SunOpta to truly become a pure-play healthy and organic foods company," SunOpta president and CEO Rik Jacobs said. "Following completion of the deal, our entire team will be able to focus solely on the growth and strategic priorities of our vertically-integrated international foods business."

Last month, SunOpta and Jacobs gave an indication on the company's central focus in 2016. SunOpta generates the majority of its sales through its ingredients division and the unit enjoyed growth of around 30% last year.

Speaking at the ICR investment conference in Florida last month, Jacobs said SunOpta would this year turn to its consumer products division, which supplies non-dairy beverages, frozen fruit, snacks and chilled juice. Last year, SunOpta saw its profitability come under pressure as it invested in expanding the capacity of its consumer products businesses. The company hopes with the additional capacity comes better cost absorption and improved profitability.

Click here for more on Jacobs' comments at the ICR conference.

BLOG

Blue Bell Creameries involved in another safety scare

Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...

BLOG

Hain Celestial's Orchard House deal waved through

The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....

BLOG

Hershey's unusual move to share sales data

Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....

BLOG

Are EU nations using Brexit to revisit country of origin labeling?

As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...

just-food homepage



Forgot your password?