Gold Coast based food manufacturer, Smart Foods, has acquired The Aussie Plant Based Co., eight days after it went into liquidation. Operations have already restarted.
Smart Foods CEO, Raghu Reddy told Food & Drink Business that despite the recent challenges for the plant-based company, he recognised its “immense potential”.
“I am incredibly excited to lead The Aussie Plant Based Co. into this new era,” Reddy said.
“While the company has faced recent challenges, I believe in its strong foundation and the dedication of its team.
“By streamlining operations, fostering key partnerships, and focusing on innovation, we will solidify its position as a leader in the Australian plant-based market.”
The Aussie Plant Based Co. was launched last year to create a larger player in the plant-based meat market.
Fënn Foods was founded by Alejandro Cancino and Paola Moro in 2015 and based on the Sunshine Coast in Queensland. In 2021, it was the first to launch a certified Carbon Neutral Plant-Based Mince under its vEEF brand and named on the 2021 Australian Financial Review’s Fast 100.
All G Foods launched in 2021 after a $15.5 million seed funding raise, announcing its precision fermentation project to create cow-free dairy and retail product, Love Buds.
In forming the new business, All G Foods demerged its retail arm, Love Buds, to focus on its precision fermentation business.
Reddy said The Aussie Plant Based Co. was known for its commitment to high-quality, sustainable, and delicious plant-based alternatives.
“It went into liquidation last week due to cash flow challenges stemming from raising prices, rapid expansion, and supply chain disruptions.
“This highlights the complexities of establishing a thriving plant-based industry in Australia, where long-term success requires significant investment and strategic planning,” he said.
Reddy acquired Smart Foods in 2022 (it launched in 2005) and manufactures ready meals and other food products predominantly for the foodservice sector, as well as its own retail brand.
He said that when you consider 79 per cent of Australians are actively trying to reduce their meat consumption, with many turning to plant-based alternatives, he couldn’t ignore the opportunity to revive the business.
“The Aussie Plant Based Co. will continue to provide a wide range of plant-based products for both food service and retail channels.
“Plans for the future include expanding distribution to ensure nationwide availability, with a focus on securing shelf space in all major retail giants, including Woolworths, Coles, Costco, Aldi, and IGA stores,” Reddy said.
Production has already resumed at its Sunshine Coast facility, with distribution discussions also underway.
