Iconic Tasmanian dairy brands find new home as Bega Group seals historic $11m deal
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Tasmania—renowned for many of its picturesque natural wonders and fresh, wholesome produce—recently made headlines for a different kind of reason.
A long-standing milk brand, Betta Milk, and other dairy products from Meander Valley Dairy from TasFoods Limited have been acquired by mainland dairy giant Bega Group in a historic $11 million deal.
Ending almost 70 years of homegrown ownership, the sale—including a 'perpetual, royalty-free licence' to use the esteemed Pyengana Dairy brand for milk and cream products—was announced to the ASX on Monday.
The acquisition hinges on the approval of the Australian Competition and Consumer Commission. If given the green light, it will mark the end of an era for the local brands.
For many, it signifies the end of an era and the retirement of the 'Betta Milk Protection Squad', an amusing concept featured in lighthearted, locally-made advertisements.
Do you recall the line: 'It's our milk, after all'? It appears that the advertising campaign, which showcased Betta Milk characters expressing their aversion to mainlanders accessing Tassie milk, is now a thing of the past.
Refer to the videos below for context:
Credit: Walter van Praag
Credit: Walter van Praag
Bega Group Chief Executive Officer Pete Findlay is certainly excited by the move, enthused by the 'quality' in the Betta Milk, Meander Valley Dairy and Pyengana dairy brands.
'We recognise the quality in these esteemed Tasmanian brands and are delighted to add them to our portfolio,' Mr Findlay said.
'Betta Milk is a fantastic regional brand that's been a household name in Tasmania for over 65 years. Acquiring these brands supports our ambitions to become a great Australian food company.'
Meander Valley Dairy and Betta Milk, both owned by TasFoods, are the latest brands to be discontinued as part of a strategy to boost profitability. TasFoods acquired Meander Valley Dairy in 2015 for $2.1 million and Betta Milk for $11.5 million in 2019—a total investment significantly surpassing the combined price of the upcoming sale.
However, TasFoods' CEO, Scott Hadley, emphasised that the sale shouldn't be directly compared. He asserted that the company is set to gain 'more value' from the milk brand than its original purchase cost.
'When you look at it as a total package, TasFoods has actually realised more for the business now than what it paid for it in 2019,' he explained, adding that the sale was part of TasFoods' strategy for 'simplifying TasFoods and strengthening the company's balance sheet'.
TasFoods intends to maintain the lease associated with Meander Valley Dairy in Launceston while entering into a sublease agreement with Bega until June 30, 2024, when the contract ends.
He further commented that he's confident Bega Group will be a 'great custodian' of the beloved Tasmanian brands.
'I think it should be seen as a positive that a big dairy company like Bega values and is really passionate about brands like Betta and Meander Valley. It's a testament to the great work of all the staff and Tasmanians that we've got this great brand.'
No one knows how Bega Group's ownership will impact the Betta Milk, Meander Valley Dairy, and Pyengana brand experiences for various stakeholders, such as Tasmanian customers and the local communities these brands have served for many years.
Despite the somewhat melancholic farewell, many customers can't help but feel intrigued to witness how this new chapter will unfold for these iconic Tasmanian brands in the upcoming months and years.
Members, especially those in Tasmania, what are your thoughts on this news? Do you perceive this as a step toward improving the local dairy brands? Or do you feel disappointed that they are no longer locally owned? Share your thoughts with us in the comments below.
A long-standing milk brand, Betta Milk, and other dairy products from Meander Valley Dairy from TasFoods Limited have been acquired by mainland dairy giant Bega Group in a historic $11 million deal.
Ending almost 70 years of homegrown ownership, the sale—including a 'perpetual, royalty-free licence' to use the esteemed Pyengana Dairy brand for milk and cream products—was announced to the ASX on Monday.
TasFoods Limited would be offloading both its Betta Milk and Meander Valley Dairy brands to Australian dairy giant Bega Cheese Limited for $11 million. Credit: Facebook/Betta Milk.
The acquisition hinges on the approval of the Australian Competition and Consumer Commission. If given the green light, it will mark the end of an era for the local brands.
For many, it signifies the end of an era and the retirement of the 'Betta Milk Protection Squad', an amusing concept featured in lighthearted, locally-made advertisements.
Do you recall the line: 'It's our milk, after all'? It appears that the advertising campaign, which showcased Betta Milk characters expressing their aversion to mainlanders accessing Tassie milk, is now a thing of the past.
Refer to the videos below for context:
Credit: Walter van Praag
Credit: Walter van Praag
Bega Group Chief Executive Officer Pete Findlay is certainly excited by the move, enthused by the 'quality' in the Betta Milk, Meander Valley Dairy and Pyengana dairy brands.
'We recognise the quality in these esteemed Tasmanian brands and are delighted to add them to our portfolio,' Mr Findlay said.
'Betta Milk is a fantastic regional brand that's been a household name in Tasmania for over 65 years. Acquiring these brands supports our ambitions to become a great Australian food company.'
Meander Valley Dairy and Betta Milk, both owned by TasFoods, are the latest brands to be discontinued as part of a strategy to boost profitability. TasFoods acquired Meander Valley Dairy in 2015 for $2.1 million and Betta Milk for $11.5 million in 2019—a total investment significantly surpassing the combined price of the upcoming sale.
However, TasFoods' CEO, Scott Hadley, emphasised that the sale shouldn't be directly compared. He asserted that the company is set to gain 'more value' from the milk brand than its original purchase cost.
'When you look at it as a total package, TasFoods has actually realised more for the business now than what it paid for it in 2019,' he explained, adding that the sale was part of TasFoods' strategy for 'simplifying TasFoods and strengthening the company's balance sheet'.
TasFoods intends to maintain the lease associated with Meander Valley Dairy in Launceston while entering into a sublease agreement with Bega until June 30, 2024, when the contract ends.
He further commented that he's confident Bega Group will be a 'great custodian' of the beloved Tasmanian brands.
'I think it should be seen as a positive that a big dairy company like Bega values and is really passionate about brands like Betta and Meander Valley. It's a testament to the great work of all the staff and Tasmanians that we've got this great brand.'
No one knows how Bega Group's ownership will impact the Betta Milk, Meander Valley Dairy, and Pyengana brand experiences for various stakeholders, such as Tasmanian customers and the local communities these brands have served for many years.
Despite the somewhat melancholic farewell, many customers can't help but feel intrigued to witness how this new chapter will unfold for these iconic Tasmanian brands in the upcoming months and years.
Members, especially those in Tasmania, what are your thoughts on this news? Do you perceive this as a step toward improving the local dairy brands? Or do you feel disappointed that they are no longer locally owned? Share your thoughts with us in the comments below.
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