Synlait Milk’s Dairyworks subsidiary has sold its Deep South ice cream brand and operations to New Zealand-based food company, Talley’s Group, effective 12 November 2020.
The Deep South brand is around 42 years old and was acquired by Dairyworks in 2016. Dairyworks was subsequently acquired by Synlait earlier this year, following an announcement in October.
Synlait, which is part owned by The A2 Milk Company, has not disclosed the value of this latest deal with Talley’s.
“The sale of Deep South enables Dairyworks to focus on our core business, explore new market opportunities and deliver strong shareholder value,” said Dairyworks CEO, Tim Carter.
“Dairyworks is going through a period of rapid expansion in our core categories of cheese, speciality cheese, yogurt and convenience butters.
“While Deep South is a successful part of our current portfolio, ice cream is not our core business. The brand has strong growth potential for a business more focused on ice cream.”
Synlait CEO, Leon Clement, added: “The decision to divest the Deep South brand and its operations reflects Synlait’s intention to increase value in line with our strategy.”
Earlier this year, Synlait announced that it was acquiring several hectares of farmland adjacent to its Dunsandel production site for NZD 25 million ($16.6 million), as it aimed to expand its sustainability actions.
© FoodBev Media Ltd 2020