Charlie’s concludes deal for Australian Operation

Charlie’s concludes deal for Australian juice-processing operation

Listed beverage maker Charlie’s Group Ltd has completed its acquisition of the beverage-manufacturing assets of the Australian Gallard and Mirage Groups (“Gallard”), giving it a strategic stake in the trans-Tasman juice and beverage market.

The transaction was settled today, and the newly formed Charlie’s Group Australia Pty Ltd, which manages Charlie’s Group’s juice-processing and bottling in Australia, will provide the platform of the expansion of Charlie’s in Australia. The total cost of the acquisition and expansion of the plant at Renmark, South Australia, is about A$2 million.

Charlie’s Group chief executive Stefan Lepionka said the acquisition would provide a strong foundation for sustainable growth in the knowledge that a long-term fruit supply was guaranteed.

“New equipment has been ordered for the Gallard plant, and installation of equipment has begun. We are also looking to appoint key staff to assist procurement manager Brad Gallard run the enlarged operation,” he said.

“This is a very exciting moment for Charlie’s and we are confident that the Australian business will improve long-term growth and lift our gross margin significantly – starting from the last quarter of this financial year.”

Mr Lepionka said the acquisition allowed Charlie’s to manufacture the Charlie’s bottled Not from Concentrate (NFC) range close to the fresh fruit source more cost-effectively on a specialised plastic bottling line.

“As a result of this, further investment will go into the Henderson site in Auckland to make it a dedicated glass-filling production facility only for the current Phoenix Organics range and the new Charlie’s Soda Co glass range.”

The new assets acquired allow juicing, processing, and bottling of fruit juices, Old Fashioned Quenchers and Smoothys at the 125ha Gallard orchard and factory at Renmark which is in the Riverland region, one of Australia’s premier citrus-growing areas. The orchard produces an average annual output of 6,000 tonnes of citrus fruit, including Valencia and Navel oranges, lemons and limes.

The Gallard family will continue to own and operate the orchard to exclusively supply Charlie’s juicing citrus requirements.

Charlie’s Group chairman Ted van Arkel said the acquisition fitted well with the group’s strategy of acquiring assets to enhance long-term growth and earnings and the acquisition has been completed smoothly.

“This acquisition sits comfortably with our growth strategy and we are confident it will strengthen the group and deliver significant benefits over time,” he said.

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