Press release
June 9, 2020
Australia's largest pure co-packer LJM Victoria has made a strategic acquisition. The company has acquired Victoria-based OZ Connect Traders (OCT), a primary food packer that transports over 10 million packaged raw food products annually for Australia's largest food retailers and global food exporters.
Over the past 12 months, LJM has also established joint ventures with Multipack Pty Ltd in Sydney and New Zealand's brand activation specialist Hoop Ltd to dramatically expand its co-packing presence in Australia and New Zealand.
LJM has over 500 employees at seven high-tech locations in New South Wales and Victoria (50,000 m², including Multipack LJM) and transports around 60 million packaged products in 1,000 article numbers annually for national and global FMCG, food, beverage, Spirits and pharmaceutical companies.
Lance Miles, director and founder of LJM, comments: “The Australian co-packing area is growing rapidly. The acquisition of OCT puts us in a prime position to benefit from market growth and to become Australia's premier primary and secondary co-packer. We are opening up a new area – mixing, filling and packaging raw food.
“The possibility of combining raw food in an air-conditioned, chilled and frozen product / under conditions, combined with a highly automated secondary co-pack system, offers the market a unique opportunity. If you become a comprehensive supplier, customers can reduce dependence on imported products and minimize their supply chain. "
He added: “OCT has specialized automated equipment and in-depth knowledge of the primary food packaging sector that complement our current business and are supported by a customer-centric approach. The size and scope of LJM as well as the most important food accreditations open up new opportunities for both companies. New services will be introduced for the customers of both companies in order to offer a holistic approach to co-packing. "
Terry Blyton, Director at OZ Connect Traders, comments: “The combined synergies will exponentially improve the ability of LJM and OCT to meet the needs of current customers and significantly support future expansion. OCT has a broad customer base that delivers products to all sectors of the retail chain in Australia and overseas. LJM brings with it a wealth of industry knowledge, biosafety systems, an expanded spectrum of accreditations and a broader customer base.
“Customers want more variety and products that are better for you. Triggered by social media, the share of this market is growing rapidly. Co-packers offer the ability to launch multiple new product launches on a small scale to see which work, and can then quickly scale successful launches to full national launches. "
“The market conditions are changing quickly and products have to be ready for the market faster. Full-service contract packaging companies like the new partnership with LJM can meet these requirements with the expertise, equipment and packaging solutions available, ”he added.
“We are already experiencing a diversification of the food supply chains. They want to orientate themselves more towards their own origins. Before COVID 19, companies trusted some imported ingredients and packaging from overseas. Delays in packaging were one of the reasons for the lack of products on the store shelves. In order to ensure a continuous supply, the shift to local products and packaging takes place. "
OCT will move its Carrum Downs operations to the LJM facility in Melbourne, Dandenong South. All OCT employees will remain, and Neil Page, Managing Director of OCT, will stay with LJM to lead the new department with Terry Blyton, who provides consulting services.
According to the latest State of Industry Report from the Contract Packing Association (US 2018/2019), the number of secondary co-packings is estimated at $ 17 billion a year and determined by international FMCG brands. It grows by about 10 percent annually, with the Australian market likely to follow.
LJM serves blue chip manufacturers, multinational FMCG companies, local manufacturers and brand managers. All types of FMCG products are packaged or handled, e.g. B. canned goods, confectionery, alcohol, tea and coffee, milk and frozen foods, personal care products, sauces and spices and bottled water. Spirits and pharmaceutical products are also packaged together regularly.
The markets served by LJM include Australia, New Zealand, Japan, China, Southeast Asia, the Middle East, the United States, the United Kingdom and Europe.
A range of services and solutions are provided to meet all co-packing requirements. With over 55 production lines, flexible machines and a highly qualified workforce, LJM has the scope and capacity to provide a comprehensive range of services with fast processing.
Further information can be found at: www.ljmms.com.au.
Source: Red Leopard PR.
LJM Victoria is expanding its presence through an acquisition that was first published in Retail World Magazine.
