San Remo pasta family buys $3m stake in Maggie Beer

The family behind SA pasta empire San Remo will acquire a $3m stake in Maggie Beer Holdings, joining Bickford’s in a bid to revive the struggling gourmet food business.

San Remo has purchased a large stake in Maggie Beer Holdings.

The family behind the San Remo pasta empire will acquire a multimillion-dollar stake in Maggie Beer Holdings, joining Bickford’s as a second iconic South Australian brand looking to breathe new life into the struggling gourmet food business.

The ASX-listed company inspired by celebrity chef Maggie Beer announced on Wednesday that a company owned by San Remo’s Crotti family – Frisden Pty Ltd – would acquire $3m worth of shares via a share placement.

It means the Crottis – led by San Remo chief executive Maurice Crotti – will become the company’s second largest shareholder behind cordial maker Bickford’s, which announced last week that it had grown its shareholding to 19.99 per cent, and would look to take a seat at the company’s board.

San Remo, which has roots dating back to 1936, is Australia’s biggest pasta maker, selling its range both into the domestic market as well as exporting to 35 countries around the world.

Maggie Beer Holdings chairman Mark Lindh said the board welcomed investment from “a highly credentialed and experienced operator in our sector”.

Maggie Beer remains an investor and director of Maggie Beer Holdings. Picture: Artemis Media

“With significant progress made in the last eight months in reducing costs across the company,

this placement will both further strengthen our balance sheet and improve the working capital of the company to continue to grow the organisation.”

The Crottis will acquire the new shares at a price of 5.6c per share – a 10 per cent discount on the average price over the previous 30 day period.

San Remo is headed up by chief executive Maurice Crotti. Picture: Keryn Stevens

Maggie Beer Holdings said it would offer shareholders the chance to participate in a $2m rights issue under the same terms.

The issue of new shares will dilute Bickford’s stake in Maggie Beer Holdings, but it will remain the company’s biggest shareholder.

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.

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.

The company’s shares were trading 4.5 per cent higher on Wednesday at 6.9c. It will hold its annual meeting on November 26.

Mr Crotti has been contacted for comment.