Ken Whittingham and Mark Robinson of Fort Restructuring have secured the sale of pioneering plant-based food producer Fenn Foods major assets, days after the Sunshine Coast company entered liquidation.
Gold Coast-based Smart Foods have entered an agreement to purchase plant and equipment, stock, vEEF and LOVE BUDS brand names, registered IPs, and other intellectual property related to the producer of meat-free alternatives.
“As one of the largest suppliers of plant-based and meat free products to major supermarkets in Australia, there was a very real risk that consumers could have faced product shortages,” said Whittingham.
“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.”
The asset sale, for an undisclosed amount, is also expected to see up to half of Fenn’s 32 employees offered new roles with Smart Foods and continued production at a state-of-the-art Sunshine Coast facility.
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.
Fenn Foods was founded in 2015 and merged with a competitor in 2023, with its vEEF and LOVE BUDS brands stocked by Woolworths and Coles. Founded by Michelin star chef Alejandro Cancino, the company had invested heavily in research, product development and manufacturing facilities.
“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,” said Whittingham.
“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.”
Plant-based meat sales have almost doubled in Australia since 2019 with the new owner of the assets, Smart Foods, operating for close to 20 years providing ready-made meals, healthy vending and catering options.