Pure Foods Tasmania (PFT) will establish an incubation fund for Tasmanian food and beverage start-ups, to help develop new proprietary products, as well as provide strategic guidance to grow the businesses.
The incubation fund will aim to commercialise products from potential partner companies that meet PFT’s assessment criteria, following a due diligence period. The start-ups will receive financial support through equity investments, as well as advice from PFT’s board and management team.
PFT managing director Michael Cooper said the team was excited to have established the fund, which will help the company identity Tasmanian businesses to invest in and nurture with potential high growth.
“By providing partner companies with strategic advice, PFT aims to not only accelerate growth, but gain a solid understanding of the potential of the businesses, thereby opening opportunities for the company to increase its holdings in Partner Companies through increased equity investments,” said Cooper.
“We look forward to establishing the investment fund in the near future and updating the market on our first investments.”
PFT said the fund will support businesses with products that have the potential to be produced on a national and international scale, with growth to be accelerated by “leveraging PFT’s established customer and distribution network, and thereby providing significant opportunities and benefits to PFT and the Partner Companies”.
“PFT aims to make initial investments into approved partner companies, assess potential growth strategies, and based on successful implementation, milestones and mutually agreed outcomes, to potentially acquire a significant holding in, or entire ownership of, successful partner companies,” it said.
In September, PFT acquired Daly Potato Co for $1.8 million to help expand the company into the ready meals market.
