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Building Bellamy's without a single cow

Building Bellamy's without a single cow

The infant formula group to be swallowed by a Chinese firm is "capital light", which means it is a front-end marketing business.

The Bellamy's business, now steered by chief executive Andrew Cohen, is heavily weighted towards brand-building and marketing sizzle. Paul Jeffers

Simon EvansSenior reporter

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Peer closely behind the curtains at infant formula company Bellamy's Australia and there's not a lot to see when it comes to physical assets.

The company, with a $1.5 billion takeover offer from $25 billion giant China Mengniu Dairy Company that is likely to be approved by Bellamy's shareholders on December 5, has one of the more extreme versions of the ''capital light'' model.

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Simon Evans
Simon EvansSenior reporterSimon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com

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Original URL: https://www.afr.com/companies/retail/building-bellamy-s-without-a-single-cow-nor-blade-of-grass-20191118-p53biw