Fenn Foods, the Australian alt-meat business that moved into liquidation, has a new owner.
Local peer Smart Foods has struck a deal to acquire Buderim-based Fenn Foods’ “major assets”, according to insolvency firm Fort Restructuring.
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Smart Foods has snapped up Fenn Foods’ Veef and Love Buds brands, as well as plant, stock and equipment. Financial terms were not disclosed.
Up to half of Fenn Foods’ 32 staff will be offered roles at Smart Foods, which is based further south in Gold Coast.
“While the company has faced recent challenges, I believe in its strong foundation and the dedication of its team,” Smart Food CEO Raghu Reddy said. “By streamlining operations, fostering key partnerships, and focusing on innovation, we will solidify its position as a leader in the Australian plant-based market.”
Fenn Foods, founded in 2015, was combined with a clutch of assets owned by another Australian business, All G Foods, last year.
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By GlobalDataThat deal led to the creation of a new entity, The Aussie Plant Based Co. All G Foods, which remained a 49% shareholder in the new business, moved on to focus on developing dairy-alternative products.
Ken Whittingham, one of the advisors at Fort Restructuring, said Fenn Foods was one of Australia’s largest suppliers of alt-meat products.
“There was a very real risk that consumers could have faced product shortages,” he said. “This combined with the fact we are dealing with stocks of perishable goods meant that we needed to move quickly to ensure the best possible outcome – with this transaction being completed within seven days of our appointment as liquidators, after discussions with several potential buyers.”
Liquidators are also “working towards” secured creditors and employee entitlements being paid out of remaining company assets with Fenn Foods Pty Ltd ceasing to operate as an entity, Fort Restructuring said.
Whittingham added: “The meat-free and plant-based sector has gone through somewhat of a boom and then consolidation phase in recent years and there’s no doubt that Covid shut-downs impacted important wholesale and restaurant channels for producers.
“However, in our experience, it’s not unusual for pioneers in a young and growing sector to face challenges and we’re pleased that through this transaction the IP and innovation around meat-alternative products developed in Australia won’t be lost.”
