Major plant-based food supplier for supermarkets ceases operations
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Supermarkets are the go-to places for grocery shopping, as it offers various options for different palates.
In a recent development, a major supplier of plant-based and meat-free products to supermarket giants has gone into liquidation.
This sudden collapse raised concerns about potential shortages of these products on supermarket shelves.
Fenn Foods prided itself on being the first certified carbon-neutral, plant-based food producer in Australia.
However, the Queensland-based company ceased operations on 9 October.
The company, launched in 2015 by Michelin-starred chef Alejandro Cancino and his wife, had 32 staff members.
Known for producing products like Veef and Lovebuds, Fenn Foods merged with All G Foods' plant-based division earlier last year.
Fenn Foods saw a downturn in sales and struggled to attract investment in recent years, indicating the broader challenges faced by plant-based food manufacturers.
The COVID-19 pandemic further exacerbated these issues, as lockdowns impacted wholesale and retail sales.
Fort Restructuring's Ken Whittingham and Mark Robinson managed to secure a buyer for Fenn Foods' assets in a swift transaction.
Gold Coast-based Smart Foods agreed to purchase Fenn Foods' plant, equipment, stock, brand names, registered IPs, and other related intellectual property.
The deal, completed within seven days of the liquidators' appointment, could also mean that up to half of staff members could get new roles, preventing layoffs.
Smart Foods's acquisition was seen as a crucial step in preventing a disruption in the supply of plant-based products to consumers.
Smart Foods CEO Raghu Reddy expressed his confidence in the foundation and team of Fenn Foods.
'While the company has faced recent challenges, I believe in its strong foundation and the dedication of its team,' Mr Reddy shared in a statement.
The fall of Fenn Foods is not an isolated incident in the Australian food supply landscape.
A few weeks ago, specialty food brand The Essential Ingredient ceased operations after almost 40 years of service.
The company cited economic challenges and the inability to return to pre-COVID profitability for its closure.
South Australian dairy company Beston Global Food Company also went under due to high operating costs, which affected about 160 employees.
For those who rely on consistent and reliable access to groceries, this news may be concerning.
Stay informed about the availability of your preferred products and be prepared for potential changes in selection or pricing.
Are you affected by Fenn Foods' closure? Please share your thoughts and food-related concerns in the comments section below.
In a recent development, a major supplier of plant-based and meat-free products to supermarket giants has gone into liquidation.
This sudden collapse raised concerns about potential shortages of these products on supermarket shelves.
Fenn Foods prided itself on being the first certified carbon-neutral, plant-based food producer in Australia.
However, the Queensland-based company ceased operations on 9 October.
The company, launched in 2015 by Michelin-starred chef Alejandro Cancino and his wife, had 32 staff members.
Fenn Foods brought in plant-based meat products like Veef in the Australian market. Image Credit: Fenn Foods
Known for producing products like Veef and Lovebuds, Fenn Foods merged with All G Foods' plant-based division earlier last year.
Fenn Foods saw a downturn in sales and struggled to attract investment in recent years, indicating the broader challenges faced by plant-based food manufacturers.
The COVID-19 pandemic further exacerbated these issues, as lockdowns impacted wholesale and retail sales.
Fort Restructuring's Ken Whittingham and Mark Robinson managed to secure a buyer for Fenn Foods' assets in a swift transaction.
Gold Coast-based Smart Foods agreed to purchase Fenn Foods' plant, equipment, stock, brand names, registered IPs, and other related intellectual property.
The deal, completed within seven days of the liquidators' appointment, could also mean that up to half of staff members could get new roles, preventing layoffs.
Smart Foods's acquisition was seen as a crucial step in preventing a disruption in the supply of plant-based products to consumers.
Smart Foods CEO Raghu Reddy expressed his confidence in the foundation and team of Fenn Foods.
'While the company has faced recent challenges, I believe in its strong foundation and the dedication of its team,' Mr Reddy shared in a statement.
The fall of Fenn Foods is not an isolated incident in the Australian food supply landscape.
A few weeks ago, specialty food brand The Essential Ingredient ceased operations after almost 40 years of service.
The company cited economic challenges and the inability to return to pre-COVID profitability for its closure.
South Australian dairy company Beston Global Food Company also went under due to high operating costs, which affected about 160 employees.
For those who rely on consistent and reliable access to groceries, this news may be concerning.
Stay informed about the availability of your preferred products and be prepared for potential changes in selection or pricing.
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