Investment07 June 2019

TasFoods: A local investment story

Mark Williams
Mark Williams
Head of Listed Investments and Strategy

In June 2016, Tasplan participated in a capital raise by Tasmanian-based ASX listed company TasFoods Limited (ASX:TFL). The initial raise was to fund TasFoods’ acquisition of well-known Tasmanian family-owned Nichols Poultry. This was to be the second major acquisition by the company in addition to the purchase of Meander Valley Dairy some nine months earlier.

The strategy for TasFoods was quite simple. To develop a portfolio of category-leading premium-branded food products primarily sourced from Tasmania.

Following a further capital raise in 2017, the company also purchased Shima Wasabi, developed Robur Farm Dairy, Pyengana Dairy and recently announced they’ve entered into an agreement to purchase iconic Tasmanian milk brand Betta Milk.

The company now owns a stable of strong brands across three key product categories: poultry (Nichols), horticulture (Shima Wasabi), and dairy (Pyengana Dairy, Meander Valley Dairy, Robur Farm Dairy and Betta Milk , subject to due diligence and approval by Betta Milk shareholders).

Supporting local jobs and investment

Tasplan is proud to be a substantial investor in TasFoods to support the vision of the company led by Executive Chairman, Shane Noble and CEO, Jane Bennett. They’ve overseen growing revenues that are now delivering positive operating cashflows which we hope to be further enhanced by the Betta Milk acquisition.

Betta Milk, established by a group of dairy farmers in 1956, has a market share of 17% of Tasmanian fresh milk sales and 37% of branded milk sales. This is another step in TasFoods’ strategy to build a successful premium food business that leverages Tasmania’s unique environmental and marketing advantages. It’s anticipated that the processing and distribution capabilities of Betta Milk will enhance other parts of the operations.

So, what’s next?

TasFoods is well positioned for long-term growth. Tasplan will continue to engage with and support the company in its growth strategy, in line with the Tasplan Board’s desire to invest in the local Tasmanian economy where it fits in with the Fund’s investment objectives.

Other Tasmanian investments

In addition to our holdings in TasFoods, Tasplan also has exposure to the following local investments:

  • 49.9% Hobart International Airport
  • 100% 66-80 Collins Street, Hobart (Telstra Building)
  • 50% 1 Franklin Wharf, Hobart (Marine Board Building)
  • 50% 199 Collins Street, Hobart
  • 50% 30-38 Barrack Street, Hobart
  • 50% Antechinus Renewable Energy
  • 100% Tasplan Commercial Mortgage book
  • Bellamy’s Australia (ASX: BAL)
  • Exposure to Launceston Airport through various Infrastructure Managers.

Photographed: Rob Nichols, Nichols Agricultural Director and founder

Past performance isn’t a reliable indicator of future performance.

This article contains information or advice that’s intended to be general in nature and which was prepared without taking into account your personal objectives, financial situation or needs. Because of that, before acting on any information or advice in this article, please consider whether it’s appropriate to your personal circumstances, talk to a financial planner and consider the relevant Member guide, available at tasplan.com.au or by calling 1800 005 166, before making a decision about whether to acquire the products. The trustee of Tasplan Super (ABN 14 602 032 302) is Tasplan Pty Ltd (ABN 13 009 563 062).

 

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