BUDERIM GINGER’S NEW FACTORY TO ASSIST THE CHINA PUSH
the bottling equipment and brands of Morwell-based Alpine Soft Drinks for an undisclosed amount. As part of the deal, Buderim would lease the Alpine factory and warehouse.
Established in 1948, Alpine produces soft drinks, cordials, mineral water and spring water for the domestic and export market.
Mr Masters said the acquisition would allow Buderim to bring the bottling of its own ginger-based cordial and beverage products in-house in order to cut costs. The company currently outsources bottling to other companies at a cost of more than $500,000 per annum.
“This is about reducing manufacturing costs as we become more vertically integrated,” said Mr Masters.
“An in-house bottling capability also will allow us to develop new products suitable for domestic and export markets.”
Buderim recently attracted a $20 million investment by Qia Qia Foods, one of the largest snack food companies in China, and Wattle Hill, a Sydney-based investment firm, as it seeks to break into the huge Chinese snack food market.
Buderim Ginger had been losing market share as demand waned for the company’s traditional products. It reported a first half loss of $2.3 million as a decline in exports of bulk ginger outweighed new products.