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April 6, 2021updated 11 May 2021 6:01pm

Pure Foods Tasmania continues M&A with move for The Cashew Creamery

By Dean Best

Pure Foods Tasmania (PFT) has made another acquisition, snapping up fellow Australian manufacturer The Cashew Creamery.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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PFT, which listed on the Australian Securities Exchange last April, has agreed to pay around AUD420,000 (US$321,394) for the plant-based ice-cream maker, also based in Tasmania.

Under the terms of the cash-and-scrip deal, approximately 52% of the purchase price will be made in cash, PFT said.

Set up in 2016, The Cashew Creamery booked annual sales of AUD124,578 for the year to 9 March 2021. PFT said the business was “growing rapidly”, with those sales equating to growth of 51%. Its products are predominantly sold in independent and health-food stores.

Announcing the deal, PFT said there are “substantial synergies” between The Cashew Creamery and another business it acquired earlier this year, Lauds Plant Based Foods, a Tasmanian firm that manufactures dairy-alternative products principally from nuts and oats.

PFT already has a presence in the plant-based market, selling dairy products made from ingredients including almonds and oats under its New Pastures brand.

Formed in 2015 to “acquire, grow and develop premium food businesses in Tasmania”, PFT has since bought local pâté supplier Tas Pate, salmon and trout firm Woodbridge Smokehouse and Daly Potato Co., the latter firm being purchased last September. Upon its listing, PFT announced its strategy of acquiring more food and beverage businesses.

In January, PFT reported a 39% rise in half-year group sales to AUD3.8m, which contributed to a near-tripling of EBITDA to AUD160,453.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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