THE AUSTRALIAN
Maggie Beer in talks to sell controlling stake in food business Maggie Beer Products
ELI GREENBLAT, SENIOR BUSINESS REPORTER
Australia’s most beloved cook, TV personality and national treasure Maggie Beer is in
talks to sell her controlling stake in her Maggie Beer Products food business, severing
her link to the food group she started with her husband Colin and that had its genesis
as a shop at her Pheasant Farm in 1979.
The publicly listed company Longtable (LON), which owns a portfolio of premium
food brands including 48 per cent of Maggie Beer Products, Paris Creek Farms and
Saint David Dairy, revealed this morning that Maggie Beer Products had returned to
profitability after a run of losses and that it was now negotiating to buy out the
remaining 52 per cent stake from Ms Beer and her husband.
“The Maggie Beer team has successfully managed costs to create a profitable,
sustainable business with a very powerful brand that is highly regarded by consumers
looking for premium food products,’’ Longtable chief executive Laura McBain told the
ASX this morning as the company released its December-half results that included a
loss of $4.73 million.
“We are currently finalising negotiations to acquire the remaining 52 per cent of the
equity in this business that Longtable does not already own, and bring the brand firmly
into our portfolio,’’ Ms McBain said.
The Maggie Beer Products business famous for its range of verjuice, vinegars, ice
creams and quince pastes is based in the Barossa Valley and was formed almost 25
years ago by Ms Beer and her husband to use her well-known name to sell a range of
premium, up-market packaged foods in the supermarkets and other chains.
Longtable, whose major shareholders include former Victorian Premier Jeff Kennett,
bought its 48 per cent stake in Maggie Beer Products in 2016 for $15m with $10m
going towards growth opportunities for the business, which includes a push into Asia,
and $5m to Maggie Beer and her family as they sold down some of their stake.
However, tough competition in the supermarkets and challenges from other brands and
private label goods have eaten away at Maggie Beer Products profitability recently
with Ms Beer’s foodie business racking up a loss of $1.2m in fiscal 2018 and a loss of
$500,000 in 2017. Full-year sales were higher, up to $18.99m in 2018 from $17.92m in
2017 with the revenue the best Maggie Beer Products has recorded since 2016.
This morning Longtable said Maggie Beer Products had returned to profitability with
pre-tax earnings of $1.5m in the first half of fiscal 2019 and revenue for the period up
4 per cent to $11.5m.
The company said that sales to major retailers was a significant contribution to the
sales growth with strong sales from new categories Maggie Beer had pushed into such
as cheeses and stocks.
LON Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
