Following the frozen berries Hepatitis A breakout in 2015 that affected more than 30 people and slashed the food manufacturer’s earnings, Patties Foods has said that it is selling its Creative Gourmet brand and also removing the frozen berries range from its Nanna’s brand.
According to a statement released this morning, “Patties Foods will focus on growing its core savoury and sweet pastry business following the sale of its Creative Gourmet frozen fruit business.”
MD & CEO, Steven Chaur, said the sale of Creative Gourmet was part of Patties ‘Foods Strategic Growth Roadmap.’
“Our core savoury and sweet pastry business, with our iconic food brands FOUR’N TWENTY, Patties, Herbert Adams and Nanna’s, represents over 90 per cent of Patties Foods sales and EBIT.
“We aim to deliver profitable growth for shareholders through a strong focus on our core savoury and sweet pastry business,” Mr Chaur said.
Patties Foods acquired the Creative Gourmet business in 2007 and has been delivering a range of market-leading frozen berry products to supermarkets ever since.
Following the sale of the Creative Gourmet frozen fruit business, Patties Foods will also undertake a managed exit of the Nanna’s brand of frozen fruit products sold in supermarkets, and the Chefs Pride foodservice brand of frozen fruit products sold to distributors. Patties Foods will work with all retailers and distributors on a program to exit the frozen fruit category entirely during early 2016.
While specific terms of the sale of the Creative Gourmet frozen fruit business are undisclosed, the sale, to Entyce Food Ingredients, is expected to generate $1.8m in proceeds and is expected to be completed by the end of December 2015, subject to a number of customary conditions being met.