Patties Foods has sold its Creative Gourmet business to a Victorian ingredients company, and has announced plans to exit the frozen berry category altogether next year.
The news comes as frozen berries return to the food safety spotlight. In the latest health scare, Fruzio-branded frozen berries imported into New Zealand from China by FSL Foods have been recalled after being linked to a Hepatitis A outbreak.
Earlier this year, Patties recalled some of its Creative Gourmet and Nanna's frozen berry products under similar circumstances.
The buyer of the Creative Gourmet business is Entyce Food Ingredients, and although the specific terms of the sale have not been disclosed, it will only generate around $1.8 million in proceeds for Patties.
A managed exit of the retail Nanna’s brand of frozen fruit products sold in supermarkets, and the Chefs Pride foodservice frozen fruit brand, is next on the agenda, according to the company.
“Patties Foods will work with all retailers and distributors on a program to exit the frozen fruit category entirely during early 2016,” the company said.
Patties acquired the Creative Gourmet business in 2007. Its sale is part of Patties Foods Strategic Growth Roadmap, according to MD & CEO, Steven Chaur.
Chaur says the company will instead focus on growing its core savoury and sweet pastry business.
“Our core savoury and sweet pastry business, with our iconic food brands Four’N Twenty, Patties, Herbert Adams and Nanna’s, represents over 90 per cent of Patties Foods sales and EBIT.
“We aim to deliver profitable growth for shareholders through a strong focus on our core savoury and sweet pastry business,” Chaur said.
