Nineteen tonnes of coconut oil up for grabs in mega auction
AN auction today could herald the end of the Banaban Virgin Coconut Oil brand if a buyer can’t be found for the popular product line.
The producer – Gold Coastbased Nature Pacific Pty Ltd – has been wound up, with 40 tonnes of product, including 19 tonnes of coconut oil, to be sold via online auction today.
Nature Pacific went into administration last month, leaving 28 people without a job.
Its assets will be sold off in three stages, starting with the coconut oil processing equipment, including the automated bottling line, continuing with $250,000 worth of stock – including 19 tonnes of bulk coconut oil – and finishing with warehouse equipment and furniture, including kitchen gear.
Auctioneer Stephen Strelitz, of Lloyds Auctioneers and Valuers, said initial signs from buyers were positive.
“We have had hundreds of inquiries,” he said.
“We opened up mid morning for inspection at 8.30am and we had 75 parties go through by 1pm. We expect 120 parties by the end of the day.”
Mr Strelitz said he had fielded interest from coconut oil processing companies and other businesses in industries that use late-model bottling facilities.
He said it was not just the plant and equipment for sale, including power tools, office equipment and coconut-oil processing equipment, but also the intellectual property such as the Banaban name.
“We are dealing with a few parties on whether we can sell the name. If we do not get it over the line it could be the end of the Banaban name.”
The Banaban people are a minority group in Fiji.
Ken Sigrah and Stacey King started Nature Pacific in 2004 to aid the Banaban people by marketing virgin coconut oil grown and harvested in Fiji.
The company started in a garage and began selling scented body oils based on traditional blends made in Fiji.
Nature Pacific grew to a $5 million business mostly employing family and members of the Banaban community living in Australia.
In June 2017, Ms King and Mr Sigrah, following financial issues caused by a cyclone destroying coconut oil supplies in Fiji, and a flood of coconut oil on to the Australian market, accepted an investment of $850,000 from Future Asset Management International for 85 per cent of the company.
Future Asset’s shares were then split into two other com- panies, allowing Natural Health and Education Pty Ltd to own 60 per cent of Nature Pacific, and The Medical Supplies Group 25 per cent of Nature Pacific.
More than 12 months later Nature Pacific went into administration.
Funds raised from the auction will be used to repay creditors, including almost $1 million owed to Natural Health and Education.