PATTIES ABANDONED ITS FROZEN BERRIES BUSINESS

FROZEN BERRIES AUSTRALIA

Following a Hepatitis A outbreak linked to its Nanna’s frozen berries earlier this year, Australian packing company Patties Foods has just announced its decision to sell its frozen berries business, going by the name of Creative Gourmet and acquired by the company in 2007. The brand has been sold to Entyce Food Ingredients for an undisclosed sum.
“We aim to deliver profitable growth for shareholders through a strong focus on our core savoury and sweet pastry business,” said Steven Chaur, managing director and CEO, Patties Foods.
Over 30 people were diagnosed with the infection in Australia, leading to a massive product recall in February. In the aftermath of the scandal, Nanna’s saw its net profit plummet from $16.7 million to $2.1 million. This dealt a heavy blow to the company’s sales and reputation, given that the berries business generated 13 percent of Patties’ sales. As soon as the exit from the market will be completed, by early 2016, Patties will focus exclusively on its savoury and pastry business.
A similar outbreak, but this time linked to Fruzio Mixed Berries, has recently hit New Zealand.