Australia's largest honey producer, Capilano Honey, has acquired Victorian honey packer, Chandlers Honey. The owner of Chandlers Honey, and two of its employess, will join Capilano.
Capilano will use the assets from Chandlers' Tullamarine site to recommission its facility in Maryborough, Victoria, which stopped operating in 2012. It had originally planned to sell its site in Richlands in Brisbane and then relocate all of its operations to Maryborough. When the Richlands site failed to sell, Capilano moved its Maryborough operations to a much smaller site nearby, although it kept the Maryborough plant serviceable as a back-up packing operation.
Capilano Honey began in 1953 as a small family business in Queensland. By 2012, it had listed on the ASX and is now estimated to hold approximately 50% of the domestic honey market. It is also one of the largest honey packers in the world.
In June 2014, Kerry Stokes acquired a 12.5% stake in Capilano after distributor, Icon Brands, sold down its 20.7% stake in the company.
The demand for Capilano products has been increasing over the past two years in Australia as well as in international markets. Last year was particularly strong for Capilano. Its revenues grew 19% to $86 million for the 2014 financial year. Net profit after tax for the year was $4.6 million, up 34% from $3.4 million the year before.
The acquisition will allow Capilano to expand its operational capacity to meet ongoing growth in demand. Capilano noted in its AXS statement that it expects to be able to produce an additional 1000 tonnes of honey as a result of the acquisition.
“It is envisaged that increased access to honey supply will be achieved through establishing renewed relationships with beekeepers in south-east Australia, whilst delivering a local regional base for honey delivery and packaging,” the statement continued.
