Cobram Estate Olives (CBO) has completed a $175 million institutional placement to accelerate its growth strategy in the US, with an additional $10 million targeted through a share purchase plan. The placement, priced at $3.20 per share, was strongly supported by both existing institutional shareholders and new investors, with demand exceeding the funds sought.
CBO said the proceeds will be used to acquire land and develop around 1600 hectares of new olive groves in California by the end of 2027. Once complete, CBO’s total Californian plantings will reach roughly 3600 hectares. The groves are forecast to yield more than nine million litres of extra virgin olive oil annually at full maturity. Currently, CBO’s existing US groves are producing 0.5 million litres a year.
Chair and co-founder, Rob McGavin, said the strong backing highlights confidence in the company’s strategy.
“The funds raised will accelerate the rollout of our USA growth strategy, where we see significant potential to replicate – and ultimately surpass – the success of our Australian business,” McGavin said.
The company’s US expansion is being led on the ground by joint-CEO Leandro Ravetti, who has relocated to California to oversee land acquisitions and grove development.
The US has become a key market for CBO, contributing more than a quarter of group olive oil sales. With supermarket olive oil sales valued at $4.2 billion (US$2.8 billion) in FY25, compared to $0.6 billion in Australia, CBO sees strong potential to expand its packaged goods presence.
CBO shares resumed trading on the ASX today (9 September). The placement was managed by Aitken Mount Capital Partners.
CBO is Australia’s largest vertically integrated olive farmer and marketer of premium quality extra virgin olive oil. The company owns a portfolio of premium olive oil brands including Cobram Estate and Red Island. CBO’s olive farming assets include over 2.6 million olive trees planted on 7000 hectares of farmland in central and north-west Victoria and 790,000 trees planted on 1025 hectares of long-term leased and freehold properties in California.
The Company also owns Australia’s largest olive tree nursery, three olive mills, two olive oil bottling and storage facilities, and the Modern Olives laboratory. It has operations in Australia and the US, and export customers in 12 countries.
CBO was #86 on Food & Drink Business’ Australia’s Top 100 Food & Drink Companies report.
