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Select margins squeezed in supermarket tango-南京夜网

2018-04-16 20:44字体:
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Select Harvests is selling off its non-core health and snack-food brands.ALMOND grower Select Harvests is selling off its non-core health and snack-food brands Sunsol, Soland and Nu-Vit to streamline its food division and focus on the Lucky nut brand. Select chairman Michael Iwaniw said selling the health and snack brands would allow the company to reduce debt and followed a review of the food business that identified inefficiencies including the spread of plant, warehouse and transport across two sites. ''If we're able to sell we'll be able to consolidate our food business on to the one site and that'll make a big difference to us,'' he said. Mr Iwaniw said historically Select had tended to buy businesses and ''just bolted them on''. ''The whole food division is underperforming, if you look at the numbers,'' he said. He declined to say whether intense supermarket discounting and competition from house brands had hurt Select's food business over the past year. ''Until we clean the business up and focus on the things we do well, it's hard to make those sort of judgments,'' he said. Packaging house-branded products for Coles and Woolworths did not undercut sale of Select's own branded products, Mr Iwaniw said. The supermarket wars were ''not at all'' the reason for the decision to sell the non-core brands, he said. But Lonsec analyst Tom Bourne said Select had suffered ''the same margin squeeze seen in other food-processing businesses. You are dancing this tango with the supermarkets, which makes it difficult,'' he said. Select has struggled since last May when Singapore-based Olam International said it would not renew management service agreements after the 2012 crop. The agreements, inherited when Olam took over failed managed investment scheme promoter Timbercorp's almond business, underpinned Select's earnings and the company's shares slumped more than a third from $3.06 and have mostly stayed below $2 since, closing up 0.5¢ to $1.625 yesterday. Mr Bourne said Select, which gets most of its earnings from almond exports, faced headwinds including a high dollar but the fundamentals were relatively strong with Asian demand rising. Analysts say the sale, handled by Kidder Williams, would garner offers worth a few million dollars but Mr Iwaniw said for the right buyer the brands ''could be worth a lot more than that''. Speculation as to possible bidders centred on trade buyers such as China's Bright Foods, which owns rival Sunbeam through local subsidiary Manassen, Scalzo Foods, Coca-Cola Amatil or Pepsi. This story Administrator ready to work first appeared on Nanjing Night Net.
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