Bellamy’s Organic public listing to fund baby food export expansion
Tasmanian-owned baby food company Bellamy’s Organic (Bellamy’s) will float its business on the Australian Securities Exchange (ASX) under the code BAL by the end of July 2014.
The initial share offer price is $1 per share to raise up to about $35 million to fund the expansion of Bellamy’s export business. Both new and existing shares will be sold under the offer.
The Company supplies its certified organic product range, which includes infant and toddler formula, as well as baby foods and snacks, to Woolworths, Coles, independent supermarkets and pharmacy chains.
It also exports its food to China, Hong Kong, Taiwan, Singapore, Malaysia, Vietnam and New Zealand. The Company said strong demand for its baby foods in Asia had led to the opening of offices in Singapore, Shanghai and Hong Kong.
Bellamy’s said it had established a comprehensive strategy to deliver continued growth through:
- expansion into Asian markets by growing distribution networks into new Asian markets and penetrating deeper into existing Asian markets;
- expansion into other new markets by identifying key markets for growth outside of Asia;
- category development outside the Baby category by leveraging Bellamy’s brand awareness into range extensions outside the Baby category;
- new products within the Baby category by continuing to grow the baby proposition and through innovation and product development; and
- full distribution across Australia and expanding the product range and type of distribution outlets within Australia.
Bellamy’s said the Company’s revenue was expected to come to $48.2 million in the 2014 financial year, after the third consecutive year of 80 per cent growth. The target forecast for 2014-15 is $83 million.
The Company said demand for “authentic organic food” had been growing, and that the baby food sector was also growing strongly. Bellamy’s said it had created a “flexible production model” that did not “weigh the business down” with owning and operating a manufacturing base, but instead focused a small and functional team on sales and marketing, brand and product development. Bellamy’s currently engages numerous manufacturing facilities across Australia as part of its supply chain network that it said delivered “efficiency in manufacturing and flexibility in dealing with increasing demand for Bellamy’s products”.
Bellamy’s Organic started in Launceston, Tasmania in 2004 as a family-operated company. It was the first to offer an organic baby formula range in Australia. Tasmanian Pure Foods Ltd purchased Bellamy’s Organic in 2007.