Roc Partners and Radek Sali back $26m capital raising for raw milk retailer Made By Cow

Roc Partners has invested $7m in Made By Cow as part of a $26m capital raising.

MADE majority owner Radek Sali and MADE CEO Leigh Small at Hellenic restaurant in Melbourne. Picture: David Geraghty / The Australian.

Emerging agribusiness investment group Roc Partners has made its first move into the dairy sector, taking a strategic stake in a raw milk producer backed by the former boss of Swisse Vitamins, Radek Sali and the Bega Cheese-owned Lion Dairy.

Sydney-based Roc Partners has invested $7m in Made By Cow as part of a $26m capital raising backed by Mr Sali‘s family office, the Light Warrior Investment Group.

Made By Cow, whose raw milk products are bottled straight from its NSW farm, uses patented high water pressure technology rather than heat to kill harmful bacteria in its milk.

It is run by ex-Swisse executive Wade Porter and for the past six weeks its products have been available for the first time in Coles supermarkets nationwide.

Made By Cow milk has also been stocked in Woolworths Metro supermarkets since March and before that was sold via Harris Farm, IGA and specialty organic shops.

It is now in 750 stores nationally, with its distribution supported by its shareholder Lion Dairy.

“We are looking at targeting another 2000 stores over the next 12 months. That will be coming from further range reviews within Coles and Woolies and 350 stores in the independent channel,” Mr Porter said.

He expects Made By Cow to generate $50m in sales over the next three years as it rolls out new products like ice creams, fla­voured milk and cheese.

“We want to concentrate on investing in our brand and awareness of our brand and how we can apply our technology to other products,’’ he said.

Frank Barillaro. Investment Director (Agriculture) at Roc Partners, said his group was excited by the Made By Cow brand and the potential for further growth.

“The company is in a really great spot to grow organically. This is our first into the dairy space. It is a post farm gate deal for us. It is premium food, which is what we like. There are a whole range of barriers to entry which put the company in good stead,’’ he said.

“We are over $1bn in assets under management in the food and agriculture space. We want to support the domestic growth initially but we were attracted to this becoming an exportable product in the future.”

Roc Partners has a significant exposure to agriculture through investments in South Coast oyster producers Australian Oyster Coast, Wagyu beef growers Stone Axe, tomato business Flavorite and chicken producers ProTen.

It recently acquired Emerald Grain from Japanese investment group Sumitomo, its first major foray into the grains sector.

Roc was also an investor in Venture capital firm Square Peg’s latest $US450m fund, alongside industry super funds HostPlus, AustralianSuper and Commonwealth Bank.

Mr Sali’s Light Warrior Investment Group has a 27 per cent stake in Made By Cow and has supported the latest capital raising to maintain its investment, after initially putting about $3m into the company three years ago.

“We have been getting feedback that it is the biggest launch since A2,’’ Mr Sali said of the Coles rollout.

“We now have definitely found the most appropriate partner with Roc’s background in agriculture. We have Lion but to have a group that understands farming and is invested so deeply and to get the tech straddle as well is an exciting value-add for the business,’’ he said.

He said Made By Cow had the potential to grow abroad.

“To be successful in Asia you have to have a successful business in Australia first but this is ­certainly a brand that would have international potential,’’ Mr Sali said.