Patties Foods exits frozen berries business

Posted by AFN Staff Writers on 7th December 2015

Almost a year since Patties Foods frozen berries were linked to a series of Hepatitis A cases in Australia, the company has announced it has sold its frozen berries business, which went by the name ‘Creative Gourmet’.


The particular Creative Gourmet division has been sold to Entyce Food Ingredients.


Managing Director and CEO of Patties Foods, Steven Chaur, said the sale was part of Patties’ strategic growth roadmap.


“Our core savoury and sweet pastry business, with our iconic food brands FOUR’N TWENTY, Patties, Herbert Adams and Nanna’s, represents over 90% of Patties Foods sales and EBIT [earnings before interest and tax],” said Chaur.



“We aim to deliver profitable growth for shareholders through a strong focus on our core savoury and sweet pastry business,” he stated.


Patties Foods acquired Creative Gourmet it 2007. Since the acquisition Patties has been selling frozen berries in Australian supermarkets using “Creative Gourmet” as the brand name. In February 2015 Creative Gourmet berries along with Patties Foods ‘Nanna’s’ branded frozen berries were linked to a series of Hepatitis A cases in Australia.


Despite Patties Foods reporting that microbiological and viral tests run on its frozen berries did not find traces of the Hepatitis A virus, a number of its frozen berry products were recalled at the time of the incident.


Patties Foods is not disclosing the exact nature of its deal with Entyce Food Ingredients but says it is expected to generate AUD$1.8 million in proceeds.


Patties Foods  reported a net profit of AUD$2.1 million for the financial year ending the 30 June 2015 after the Hepatitis A incident. The figure represented a nearly 88 per cent profit drop on 2014’s AUD$16.7 million profit.


Where to now for Patties Foods?


Following the sale of Creative Gourmet, which is expected to be completed by the end of December 2015, Patties Foods will also stop selling frozen fruit under its Nanna’s brand and its Chefs Pride brand sold to commercial kitchens. The exit from the market is expected to be complete by the end of early 2016.


Patties says it will continue to develop its sweet pastry and apple pie market that is its traditionally known for under its brands Nanna’s, Four ‘N’ Twenty and Herbert Adams.

Chefs Pride will continue offering its other ingredients it already sells to commercial kitchens.


Entyce Food Ingredients


Entyce Food Ingredients was established in 2006 and is currently based out of Knoxfield in Victoria.


The company is known for selling ingredients to commercial kitchens. Its ingredients list is extensive with bakery, condiments, dairy, fruit, vegetables, poultry, seafood, and more available for purchase.


Entyce Food Ingredients also provides supply chain management, shipping, manufacturing, co-packaging, global sourcing, technical services and project management services to its customers.


Relevant articles


Hepatitis A crisis in frozen berries recall


Patties reports negative Hepatitis A test results on its berries


Patties Foods berry recall impacts 2015 results greater than predicted


2 December 2015: Imported frozen berries linked to Hep A outbreak in NZ