This morning Bega Cheese Limited [ASX:BGA] increased slightly by 0.14%, maintaining their high share value.
They are now trading at $6.98 a share, which is an increase from last year’s $5.26.
Bega cheese was founded in 1899 and exports its dairy products across 40 different countries.
Expanding their variety
Last year Bega acquired a peanut butter product from Vegemite and Kraft.
It has been rebranded as Bega peanut butter, as part of a $453 million purchase of the Mondelez (Australia and New Zealand) grocery business.
The purpose of the deal was to expand its product range while diversifying away from dairy products.
Bega also decided to acquire Peanut Company of Australia in order to expand the overall peanut production in Australia and keep the product local.
Chairman Barry Irvin stated that Bega is heavily invested in the brand and its overall promotion.
He feels Bega peanut butter stands out from its competitors, due to the fact that it uses its own supply chain.
Mr Irvin stated that the company’s goal is to ensure that Australian farmers remain a strong contributor to their franchise.
Bega District News reported that Barry Irvin stated:
‘The business has performed well, particularly when you take into account the significant corporate costs associated with the recent acquisitions.’
Bega’s new focus and future outlook
According to their half year results, Bega aims to manage their overall volatility in changing markets while also protecting the company’s strengths and returns.
While expanding channels and markets for all of their products, they also wish to build on overall sales strength and optimisation of the company’s infrastructure.
Bega continue to push forth environmental and safety implementations, as they have reported continued success with their environmental management program.
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