T&G Global sells NZ processed foods business

T&G Global has agreed to sell the major assets of its subsidiary ENZAFoods New Zealand, trading as T&G Foods, to natural fruit and vegetable ingredient producer Cedenco.

T&G stated it was considering this sale in October 2017. Since the company’s strategy is to focus on its core business of growing, sourcing, packing, marketing, selling and transporting fresh produce in New Zealand and globally, it concluded that T&G Foods is “non-core and consequently should be either sold, rationalised or closed”.

The agreement will see Cedenco taking on the food processing business, employees, assets and the long-term property lease in Hastings, as well as the fruit ingredient assets in Nelson. Together, these two manufacturing sites can process up to 200,000 metric tonnes of apples and other fruit.

The deal will be settled on 20 April, but until then T&G will continue to operate T&G Foods and retain its existing employees. Its pipfruit division, which is responsible for growing, packing and distributing apples and pears globally, also has a supply agreement with Cedenco for processing apples.

Furthermore, T&G’s small format pouch assets in Nelson have been sold to NZ Apple Products, along with a three-year lease agreement of its Nelson site.

“T&G Foods’ people, products and production facilities will benefit from being owned and operated by Cedenco and NZ Apple Products Limited, who are both focused on fruit processing and are willing to invest for the long term,” said Tim Clarkson, chief strategy officer for T&G. “The New Zealand apple and pear industry needs good fruit processors and T&G is delighted to have such strong local partners to take the business forward.”

T&G is discussing its apple juice concentrate facility in Nelson, and further announcements will be made in due course.

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