Coles seeks security ands certainty, in buying two milk processing factories
"Coles' purchase of two milk processing factories has been described as a "strategic acquisition", by one leading food industry analyst.
Melbourne-based Fresh Agenda director Steve Spencer said the purchase of the Victorian and NSW factories, from Canadian dairy giant Saputo Dairy Australia for $105 million, was no surprise.
"Milk production has been dropping for a long time, the owner of the asset probably flagged their interest in moving them on, so it's logical," Mr Spencer said.
"It's a very strategic acquisition for the security of that business - they [Coles] used to have milk plants a long time ago.
"They do it for a reason and the reason is security and certainty - in this industry, at the moment, there isn't a lot of that."
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Source: Andrew Miller, 5 April 2023