Bickford’s buys major stake in struggling Maggie Beer Holdings

Historic drinks maker Bickford’s has snapped up a major stake in the gourmet food company inspired by celebrity chef Maggie Beer after years of huge losses.

SA food icon Maggie Beer is the face of Maggie Beer Holdings, which has struggle in recent years. Picture: Channel 10

Cordial maker Bickford’s has acquired a major stake in Maggie Beer Holdings as it looks to breathe new life into the struggling gourmet food company following years of whopping losses.

Bickford’s has been gradually increasing its shareholding in ASX-listed Maggie Beer Holdings in recent months, and last week outlayed $2.7m to lift its stake to 19.99 per cent – just below the 20 per cent threshold that requires a formal takeover to be launched.

It makes the company, led by the Kotses family, the biggest single shareholder in the company inspired by South Australian celebrity chef Maggie Beer.

Bickford’s Group head of sales, marketing and hospitality Chris Illman said the company was now looking to secure a seat at the board of Maggie Beer Holdings as part of a bid to turn around the company’s fortunes.

“Our interest in Maggie Beer Holdings stems from the belief that the company’s intrinsic value is not fully reflected in its current market capitalisation,” he said.

Bickford’s is led by Angelo Kotses.

Bickford’s has been producing cordial since 1874. Picture: Supplied by Bickford's

“With significant FMCG (fast-moving consumer goods) experience, Bickford’s is well positioned to assist the board in refining strategic priorities, optimising brand performance, and realising the full potential of the business for shareholders.

“Bickford’s is looking to bring its proven FMCG capability, disciplined commercial approach, and deep experience in brand and product development to Maggie Beer Holdings. We believe our practical industry knowledge can help sharpen decision-making, drive efficiency, and accelerate growth.”

Mr Illman said there were opportunities to turn the business around by “innovating in growth categories, disciplined cost management and supply chain optimisation”, but said “at this stage” a full takeover was not being contemplated.

Bickford’s cordial was first produced in 1874, and the group has since expanded via sister company Vok Beverages, which has acquired brands including Beresford Estate wines in McLaren Vale, 23rd Street Distillery and Vale Brewing.

Meanwhile, Maggie Beer Holdings has struggled to convert the star power of Maggie Beer into sales growth across its range of jams, chutneys, condiments and other gourmet food products, while investments in brands like Paris Creek Farms have turned sour.

The company sold off the loss-making Paris Creek Farms earlier this year for $500,000 to Victorian food manufacturer and distributor Katoomba Global Foods, after it paid $34m for the business in 2017.

Maggie Beer Holdings handed down a $24.3m loss in the year to June, a slight improvement on the $28.2m loss a year earlier. A restructure, asset sell-off and cost-cutting program have been implemented to stem the losses.

The company’s shares were trading 8.3 per cent higher on Tuesday at 6.5c, but have fallen 90 per cent since 2022.

Food icon Maggie Beer is no longer involved in the day-to-day operations of Maggie Beer Holdings but remains on the board and also owns shares in the company.

Maggie Beer Holdings chairman Mark Lindh said the board welcomed the investment by Bickford’s and looked forward to “working constructively” Mr Kotses to grow the company’s product portfolio.

“We see it as a very exciting development that Angelo has taken a substantial stake in the company,” he said.

“He and his team have significant experience in growing FMCG and premium food and beverage businesses and we are hopeful we can draw on these skills to continue to grow the Maggie Beer Holdings Limited group.”