The Canberra facility was originally owned by Capitol Chilled Foods Pty Ltd. Many years ago, probably when Bega Cheese was still a co-op, it became a strategic acquisition with a 25 per cent stake to allow Bega to have access to and keep an eye on its market for milk to the ACT region. The other 75 per cent was owned by Lion Dairy & Drinks. I once asked Mr Irvin why it continued to be a subsidiary when it rarely returned us a profit. At that time the site was strategically important as it also was the closest point to an international airport for exports than any other dairy processing plant in Australia. So it served a purpose then and into the future. Whole ownership of Capitol Chilled Foods was inherited by Bega as part of the Lion Drinks takeover. The site at Griffith is prime land that could be converted to residential if sold. Its value to Bega's operations is considerable, hence the review of its manufacturing function.
BGA Price at posting:
$3.60 Sentiment: Buy Disclosure: Held
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