Life Savers buy a sweet deal - Quinn
HE may have saved it from being tossed into a financial bin but Gold Coast businessman Tony Quinn has no qualms about the prospect of rejuvenated confectionary manufacturer Darrell Lea being sold.
Mr Quinn and his wife Christina bought Darell Lea in 2012 after it was placed into administration, building the company up before Sydneybased private group Quadrant paid the Quinns $200 million for it earlier this year.
It is understood the Quinns retained a small stake in the sweets manufacturer.
His comments came after Quadrant yesterday announced it had acquired iconic Australian sweet Life Savers as part of a deal with Nestle New Zealand.
The deal would also give Quadrant New Zealand brands including Oddfellows, Mackintosh’s, Heards, Black Knight and Fabulicious Red Licorice.
As a result, the manufacture of Life Savers is set to return to Australia, and will roll off the production line at Darrell Lea’s Ingleburn factory, in Sydney’s southwest.
However, reports from Darrell Lea CEO Tim York that while further acquisitions could be on the cards, Quadrant would most likely be looking for a sweet moment to part with the group, failed to sour Mr Quinn’s view of the operation.
“Quadrant has some very sharp operators at the helm, the best in the business, and what they want to do is capitalise on an expanding business,” he said.
“I think the Darrell Lea story is a great story. I saved it, if you like, made the product more accessible to the general public and expanded the range and exports.
“Quadrant came along and felt they could do a better job of further expansion.
“No one should feel sad when a company is being progressive and it’s doing good things for its employees and customers.
“I certainly embrace progress and expansion.”
First created in the US in 1912, Life Savers in that market is owned by chewing gum maker Wrigley, in turn owned by confectionery titan Mars. In Australia, Life Savers were first made in Victoria almost a century ago.
It is the biggest name within a lolly bag of brands bought by Darrell Lea as part of the agreement with Nestle, struck at an undisclosed price.
It marks a homecoming for the Australian iteration of Life Savers, which were last made here early last decade.
Mr York said: “As part of our business growth ambitions, we are in the market for great confectionery brands and Life Savers is certainly that.
“We believe there is significant growth potential for the Life Savers brand through new product innovation and gaining additional distribution in Australia and New Zealand.”
When Quadrant bought Darrell Lea it said it recognised the tremendous growth Darrell Lea had achieved over the past five years.
The private equity house said there was scope for continuing double-digit growth for the business, both organically and through the takeover of complementary confectionery brands and manufacturing facilities.
In January, Nestle also sold Australian chocolate brand Violet Crumble, created in Melbourne early last century, to a domestic company.
Adelaide-based Robern Menz bought the Violet Crumble brand, also for an undisclosed price.