New partners in co-packing, LJM NSW and Multipack merge
While LJM NSW was geared towards food, Multipack had a strong FMCG and pharmaceutical focus. Combined with LJM NSW’s Victorian-based parent company LJM, the businesses have a shared warehouse footprint of 50,000 m2 across seven sites in New South Wales and Victoria and move approximately 5000 pallets/day of packed goods for Australia’s largest FMCG, food, beverages, spirits and pharmaceuticals companies.
Lance Miles, Director and Founder at LJM, said: “Co-packing is an industry where scale brings scale, which was the driver behind the merger. It is estimated that the co-packing industry in Australia is worth approximately $300 million. With turnover of approximately $75 million, the consolidated entity captures approximately 25% of the market share.
“Through the merger, we have become the largest secondary co-packer in New South Wales, with a similar market share to that held by our parent company LJM in Victoria.”
Adam Rawson, Director at Multipack, said, “Multipack is very technically focused with state-of-the-art IT processes which are greatly benefiting the merger entity. Co-packing is a growing sector and forms an integral part of the supply chain for our clients.
“In the past, co-packing was often viewed as an ad hoc service; however, today, many of Australia’s leading FMCG manufacturers and importers that stock the shelves of Coles, Woolworths, Aldi, Costco or independent retail chains use co-packing providers to handle entire product ranges.
“The co-packing industry is moving from strength to strength. The industry is highly regulated with accreditations and quality management systems to ensure high standards are maintained. Only bigger players will have the manpower to keep up with the growing list of requirements,” Rawson added.
Multipack LJM works with blue-chip manufacturers, multinational FMCG companies, local manufacturers and brand custodians. All types of FMCG products are packed or handled such as canned food, confectionery, alcohol, tea and coffee, dairy and frozen foods, personal care products, sauces and condiments, and bottled water. Spirits and pharmaceutical products are also regularly co-packed.
Markets serviced include Australia, New Zealand, Japan, China, South East Asia, Middle East, USA, UK and Europe.
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