[Jonathan Leane]

Aussie brands are being sold to overseas companies at an alarming rate - find out why​

The widespread sell-off of Australian brands to international companies is showing no signs of slowing down, according to one expert.

The latest big name to depart our shores is Victorian-based Patties Foods, which owns Four’n Twenty, Herbert Adams, Boscastle, Nanna’s and Leader. They've been bought by Pacific Alliance Group (PAG), which is based in Hong Kong but also has offices in Australia.

This comes hot on the heels of Vesco Foods — which includes On the Menu, Super Nature, Lean Cuisine, Annabel Karmel and Jarraballi — also being snapped up by PAG. The conglomerate previously acquired The Cheesecake Shop as well as Craveable Brands (Red Rooster, Oporto and Chicken Treat) and The Cordina Group. They also provide commercial food services under the 7 Star, Clever Cuisine and Enrico’s brands.

Needless to say with such a long list of recognisable Aussie names now under foreign ownership there's been a lot of backlash on social media...and we can understand why! People are worried about job losses here in Australia as well as the impact this might have on food prices going forward – will they skyrocket now that these products are no longer owned locally? Only time will tell…

While PAG has not revealed how much they paid for Patties Foods and Vesco Foods combined it's rumoured to be more than 500 million dollars.

Sid Khotkar, Managing Director & Head of PAG Private Equity in Australia & New Zealand, said that the acquisition presents a significant opportunity for Patties Foods & Vesco Foods: ‘It unlocks further investment into market-leading innovation & beloved food brands.’

Paul Hitchcock, CEO of Patties Foods, echoed these sentiments saying: ‘It [the sale] is recognition of our reputation as a highly respected food manufacturer…’

A lot of quintessentially Australian brands we grew up with aren't Aussie owned anymore. Source: OpenAI​

Over the last few years we've seen several other iconic Aussie brands fall victim to overseas buyers including Arnott's (US-owned Campbell’s Soup Company/KKR), Uncle Tobys (Nestle), Fosters beer (Asahi), Tooheys (Kirin) & RM Williams (LVMH/Forrest family).

University Professor Pi-Shen Seet told NCA NewsWire that part of the issue was due to Baby Boomers reaching retirement age & wanting to exit businesses they'd spent their lives building up: ‘If they don't have a successor ... then they have to find another way out …’ He went on to say that globalisation had played a role too: ‘...over the past 20 or 30 years it's gone up because of the general globalisation around the world’.

According to Professor Seet, COVID-19 temporarily put a stop to these mergers and acquisitions but Seet predicted at some point, these would start taking place again in larger numbers. That certainly seems to be true.

So what does the future hold for Aussie brands? Only time will tell but one thing's for sure – we're in for an interesting ride! We can't help but feel a little disappointed at quintessentially Aussie brands 'selling out', but on the other hand if these businesses continue to make their products in Australia and employ Aussies – is it really such a bad thing? Let us know what you think.

By the way, 'Australian made' might not be all it's cracked up to be either. Check this article out for more information.

 

[Outlander]

Where's Albo???

 

[Robbo3006]

One manufacturer in Penrith sold to westerners and they swore blind they wouldn't close it, 270 people out of work months later, they wanted one machine that they moved to China and scrapped the rest and closed the place down. Big corporations are like big pharma, they don't give a crap about anything but money, our politicians should be sacked for letting it happen, we don't make tax from them and the profits go overseas. Corruption to the core.

 

[poppyshero]

More products added to my list of Don't Buy Again. Getting harder and harder to buy Australian by the week. Easier now to use my local suppliers and home cook my own. I am disgusted that governments allow this to happen. Put Australia First. We vote and pay your wages.

 

[Stanier123]

As these are highly processed foods health conscious people won’t be affected or contribute to the overseas profits.

 

[danven]

If Baby Boomers want to "smell the roses", why no Aussie buyers of those businesses? A better reason might be local businesses do not want to make the local investment!

 

[Ricci]

I think it's sad to see so many businesses sold overseas. Why can't Superannuation Funds bring back the money they invest overseas and re-invest it here in Aussie companies and Aussie jobs?
Why aren't Aussie workers banding together to form co-operatives to purchase these companies and build a profit making go of it?

 

[RTS]

Hopefully new local businesses will start up in competition with the globalised companies.
Hungry Jack's holds it's own against McDonalds.
Whenever I find out about overseas buyouts I stop buying the product.

 

[Luckyus]

The widespread sell-off of Australian brands to international companies is showing no signs of slowing down, according to one expert.

The latest big name to depart our shores is Victorian-based Patties Foods, which owns Four’n Twenty, Herbert Adams, Boscastle, Nanna’s and Leader. They've been bought by Pacific Alliance Group (PAG), which is based in Hong Kong but also has offices in Australia.

This comes hot on the heels of Vesco Foods — which includes On the Menu, Super Nature, Lean Cuisine, Annabel Karmel and Jarraballi — also being snapped up by PAG. The conglomerate previously acquired The Cheesecake Shop as well as Craveable Brands (Red Rooster, Oporto and Chicken Treat) and The Cordina Group. They also provide commercial food services under the 7 Star, Clever Cuisine and Enrico’s brands.

Needless to say with such a long list of recognisable Aussie names now under foreign ownership there's been a lot of backlash on social media...and we can understand why! People are worried about job losses here in Australia as well as the impact this might have on food prices going forward – will they skyrocket now that these products are no longer owned locally? Only time will tell…

While PAG has not revealed how much they paid for Patties Foods and Vesco Foods combined it's rumoured to be more than 500 million dollars.

Sid Khotkar, Managing Director & Head of PAG Private Equity in Australia & New Zealand, said that the acquisition presents a significant opportunity for Patties Foods & Vesco Foods: ‘It unlocks further investment into market-leading innovation & beloved food brands.’

Paul Hitchcock, CEO of Patties Foods, echoed these sentiments saying: ‘It [the sale] is recognition of our reputation as a highly respected food manufacturer…’

View attachment 6479
A lot of quintessentially Australian brands we grew up with aren't Aussie owned anymore. Source: OpenAI​

Over the last few years we've seen several other iconic Aussie brands fall victim to overseas buyers including Arnott's (US-owned Campbell’s Soup Company/KKR), Uncle Tobys (Nestle), Fosters beer (Asahi), Tooheys (Kirin) & RM Williams (LVMH/Forrest family).

University Professor Pi-Shen Seet told NCA NewsWire that part of the issue was due to Baby Boomers reaching retirement age & wanting to exit businesses they'd spent their lives building up: ‘If they don't have a successor ... then they have to find another way out …’ He went on to say that globalisation had played a role too: ‘...over the past 20 or 30 years it's gone up because of the general globalisation around the world’.

According to Professor Seet, COVID-19 temporarily put a stop to these mergers and acquisitions but Seet predicted at some point, these would start taking place again in larger numbers. That certainly seems to be true.

So what does the future hold for Aussie brands? Only time will tell but one thing's for sure – we're in for an interesting ride! We can't help but feel a little disappointed at quintessentially Aussie brands 'selling out', but on the other hand if these businesses continue to make their products in Australia and employ Aussies – is it really such a bad thing? Let us know what you think.

By the way, 'Australian made' might not be all it's cracked up to be either. Check this article out for more information.

I stopped buying packaged food ages ago, I don't what they say about quality control in their own country I still don't trust it. Just as well I know my way round a galley.

 

[Ezzy]

As we are aware, our islands are also being sold off. They are bought up by overseas companies who encourage Aussies to holiday there while not doing maintenance making these places unviable to holiday at. Next they spend money making these attractive for their own people & cater to them in every way possible. Another way of sending the profits back home without paying Australian Taxes.

 

[Luckyus]

As we are aware, our islands are also being sold off. They are bought up by overseas companies who encourage Aussies to holiday there while not doing maintenance making these places unviable to holiday at. Next they spend money making these attractive for their own people & cater to them in every way possible. Another way of sending the profits back home without paying Australian Taxes.

We cannot buy land in the countries that are decimating our infrastructure, ergo they shouldn't be able to buy land in ours,

 

[Nikko]

Hopefully new local businesses will start up in competition with the globalised companies.
Hungry Jack's holds it's own against McDonalds.
Whenever I find out about overseas buyouts I stop buying the product.

I came to Australia in 1999 and was upset to see MacDonalds everywhere. I craved my favorite BURGER KING. I was actually back in the USA enjoying a Burger King burger and got chatting with some Aussies who simply were not pleased with the Macas in the US - they enjoyed the Aussie Hungry Jacks 'which was this company, Burger King, you know?' they told the story. I am now a true HUNGRY JACKS devourer.

 

[Kgee]

It seems China is taking over. I think it's disgraceful that these businesses are being sold to foreigners. Surely they could wait a bit longer or reduce the price a little to give Aussie companies a chance to keep it Australian. I won't buy any of these brands. Everytime they get sold to overseas buyers the quality goes down. Arnott's is a prime example, even if they are still made here.
Very sad for our country.

 

[Stanier123]

It seems China is taking over. I think it's disgraceful that these businesses are being sold to foreigners. Surely they could wait a bit longer or reduce the price a little to give Aussie companies a chance to keep it Australian. I won't buy any of these brands. Everytime they get sold to overseas buyers the quality goes down. Arnott's is a prime example, even if they are still made here.
Very sad for our country.

Australia has always been revenue poor. England, USA, Japan and South Africa have historically invested in mines here. Aussies spend their money on overseas holidays. Now China is replacing the USA and European investor.

Your superfund invests overseas.

I have a choice not to buy products from China or companies owned by the Chinese. Check out your dairy, power, food.. companies. Vote with your feet and money.
Look into the websites like NotmadeinChina.com.

Dont buy Apple, MIcrosoft, HP, Lenovo, MSI computers, tablets or phones.. Gigabyte Taiwan, Samsung S Korea and some new Indian companies have similar products. Complain if your schools or clubs buy. OK some components may come from China but do your best if forced labour, human rights abuses and slavery worry you. If not then live with your conscience.

If you want a good life, do good things.

 

[Kgee]

Australia has always been revenue poor. England, USA, Japan and South Africa have historically invested in mines here. Aussies spend their money on overseas holidays. Now China is replacing the USA and European investor.

Your superfund invests overseas.

I have a choice not to buy products from China or companies owned by the Chinese. Check out your dairy, power, food.. companies. Vote with your feet and money.
Look into the websites like NotmadeinChina.com.

Dont buy Apple, MIcrosoft, HP, Lenovo, MSI computers, tablets or phones.. Gigabyte Taiwan, Samsung S Korea and some new Indian companies have similar products. Complain if your schools or clubs buy. OK some components may come from China but do your best if forced labour, human rights abuses and slavery worry you. If not then live with your conscience.

If you want a good life, do good things.

Thanks for the website address, I hadn't heard of it before. I always buy Australian made and owned where possible, and my daughter does also, though it's getting harder all the time.