Two acquisitions in six months have seen fresh and frozen produce company Produce Republic become the country’s largest suppliers of fresh and processed produce.
In September 2021, after a competitive bidding process, Produce Republic acquired food processing company In2Food out of receivership.
In2Food provides fresh fruit and vegetables to food manufacturers, hotels, cafés restaurants, caterers, and aged care facilities nationally.
The business had a network of 10 storage, distribution and packaging facilities throughout Australia, and a fleet of more than 100 trucks.
Produce Republic managing director Brett Jackson tells Food & Drink Business its priority for In2Food was to re-engage with its network of growers and ensure the jobs of the company’s 400 employees.
Jackson says the company had been badly affected by the pandemic but had “outstanding fundamentals, with established supply relationships with local growers, a diverse customer base, loyal employees and an integrated national footprint”.
“What excited us about In2food was the opportunity to introduce our manufacturing disciplines into that sector. It’s obviously not a solution for everything but it will form part of our strategy.
“Our initial focus was getting in, understanding the business, and then making strategic decisions from there,” he says.
Six months later, a revived In2Food acquired the Sydney-based fruit and vegetable supplier MDProvodores, turning the company into one of the largest suppliers of fresh and processed produce to the hotel, restaurant, and café (HoReCa) market in Sydney.
MD Provodores was founded 18 years ago and supplies more than 550 venues across Sydney with fresh – and through its wholly owned subsidiary Slice + Dice – pre-cut fruit and vegetables.
“In2Food’s state-of-the-art processing facilities, expansive reach and direct-from-farm approach, enhanced by MD Provodores’ local experience, diverse customer base and processing operations will makefor a formidable force in a competitive market,” Jackson says.
Founder and director Mouhamad Dib says the acquisition will enable the business to grow its local and national footprint.
“MD Provodores currently supplies more than 550 venues in the Sydney area. As part of In2Food we will be able to service more than 1000 venues, with all food delivered fresh before lunchtime,” Dib says.
Once completed, In2Food will operate a network with close to 500 employees, in excess of 110 trucks, and a facility in every capital city except Hobart, servicing more than 5000 customers nationally.
Jackson says, “Our purchase of MD Provodores brings two strong food companies together. The combined company will position In2Food as the leading supplier to the HoReCa market in New South Wales and strengthen our position as the pre-eminent national player in the sector.”
Growth goals
The acquisitions of In2Foods and MD Provodores are the first moves for Produce Republic, which also owns the Yarra Valley-based frozen fruit supplier Aussie Frozen Fruit, in becoming a diversified food business.
“Produce Republic has been a food processing company, but we are looking to expand more broadly into the food sector. Aussie Frozen Fruit is the only Australian business in the sector operating on the large scale that we do,” Jackson says.
The company supplies Woolworths nationally with five SKUs. During Covid it was able to offer consumers a product that was not only Australian made, but in a category affected by the crippled international supply chain.
“It was pretty difficult to get your hands on a container of frozen berries,” he says.
Jackson joined the company in 2020, after running the citrus operations for agribusiness Nutrano for 13 years.
He was looking for something new when Aussie Frozen Fruit approached him. The scope of the business while still having horticulture connections was a refreshing opportunity.
The company’s operations are based in Victoria’s Yarra Valley.
The MD Provodores acquisition was completed on 11 April and was facilitated by Remagen Capital. Remagen’s founder and managing director Simon Raftery is also the executive director of Produce Republic.
