www.freedomfoods.com.au
Freedom Foods is a leading brand in the “free from” market segment, which comprises food and beverage products manufactured free from key allergens such gluten, wheat, nuts and dairy, while also maintaining a superior nutritional profile.
The market for “free from” products continues to expand in Australia and internationally reflecting the rising prevalence of food allergies and intolerances and the increasing consumer demand for health conscious products that eliminate potentially unhealthy ingredients.
Since acquisition by FNP in 2003, the business has been transformed with growth in sales and profitability. In recent years, however, Freedom Foods ability to meet the growing demand for “free from” food and beverages has been limited by the requirement for strict manufacturing and quality control processes and a lack of available quality manufacturing capacity in the Australian market.
To meet this demand and improve financial returns, the Company acquired in 2008 a 12,000sqm food grade manufacturing site at Leeton in regional NSW. The site is estimated by FNP management to have a replacement value in excess of $15m and was acquired for $5.4 m (land and buildings). The site also includes a milling operation, providing Freedom Foods with capability to source and mill its key raw materials for internal use and 3rd party sales.
Since this time, Freedom Foods has undertaken a major capital equipment program, which when complete in December 2009 will provide in FNP management’s view a world first integrated scale manufacturing capability for a broad range of cereals, snacks and baked products “free from” key allergens such as gluten, nuts and dairy.
This investment represents a significant transformation of the Freedom Foods business model and provides an opportunity for growth in sales and profitability for the future.
The capital investment project has been implemented to provide maximum flexibility to produce a range of products at lower cost, with capacity for growth in product range and volume. Newly developed quality systems and “free from” processes from raw material to finished product will enable the business to guarantee to its consumers “free from” compliance and build competitive advantage relative to other players in a fragmented market.
The Leeton site is one of only 2 Australian owned broad capability cereal manufacturing operations in Australia, with equivalent other operations owned by major multinational food groups.
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