Oct 3rd 2022 /
Westland Milk Products acquires Canary Foods
New Zealand’s internationally renowned dairy products are set to take further flight following the acquisition today (October 3) of dairy manufacturer Canary Foods by Westland Milk Products.
Westland CEO Richard Wyeth said the purchase of Canary Foods would merge New Zealand’s rich West Coast dairy heritage with an innovative business that has already spread its wings to international markets.
“Canary is a fantastic fit for our business because it is so obviously based on a strong understanding of what our customers want and need,’’ Mr Wyeth said. “Their commitment to innovation, sustainability and quality in pursuit of consumer demands are values we very much admire and uphold.
“After our $40 million investment in doubling our consumer butter manufacturing capacity at Hokitika, this extends our long-term commitment to add value to Westland’s butter portfolio by playing a greater role in the expanding global consumer butter and spread market.
“Westland continues to go from strength to strength under our parent company Yili. Yili’s investment has helped us turn our performance across the entire company around and we’re now in a very strong position to capitalise on that.’’
Canary has developed a world-first compostable, individually sized butter squeeze pack in response to consumer demands for ethically responsible packaging and global calls for an end to single-use plastics.
“This is a great example of a New Zealand company leading the world in research and development and we look forward to getting behind this culture of innovation even further,’’ Mr Wyeth said.
“We are very excited about the opportunity of joining with Canary and providing more jobs and opportunities for our sector.’’
Canary Foods Executive Director and shareholder James Gray said the acquisition by Westland would give the Waikato-based dairy manufacturer more opportunities for expansion and access to global markets.
“Canary grew off the back of taking outstanding New Zealand dairy products to the world by catering for the airline and hospitality industries,’’ Mr Gray said. “We used the Covid pandemic as an opportunity to reassess our strategy and now, after record sales last year and with international travel and the hospitality sector set to take off, we are already in a strong position as these markets continue to bounce back.’’
Canary Chairman and shareholder Jeremy Curragh said the relationship with Westland parent company Yili would give the company even greater access to international markets.
“Being part of a wider group that shares our commitment to sustainability and innovation is incredibly exciting,’’ Mr Curragh said.
“We’re extremely proud of the extensive international distribution networks we have managed to establish over the past 21 years. We have long and loyal customers and a highly skilled and dedicated workforce who we know will continue to thrive under Westland’s ownership. Their hard work and dedication has been key to much of Canary’s success.’’
Canary Foods exports 75 per cent of the dairy products it manufactures for a range of applications. Established in 2001, Canary Foods is a highly regarded manufacturer, producing reworked premium butter and cheese-based products such as butter sheets and medallions. Canary’s 100 per cent New Zealand dairy products are supplied to a diverse range of businesses in the retail and food service sectors, including supermarkets, airlines, restaurants and bakery outlets.
Under the deal, Canary Foods will become a subsidiary of Westland Milk Products, retaining its own brands and third-party manufacturing agreements.
“Canary will continue to develop and expand our portfolio of Canary-branded products as well as working as a third-party manufacturer for other great New Zealand brands.’’
Murray & Co acted as transaction advisors.
For more information contact:
Email: [email protected]
Local: +64 (03) 288 0213
Global: +61 467 792 013