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Alliance Group Confident In Meat Industry Future

Contributor:
Fuseworks Media
Fuseworks Media
Alliance Group.jpg
Alliance Group.jpg

17 October 2008 - Alliance Group today announced it has purchased the assets of the North Island meat company, Levin Meats Ltd. In making the announcement, the company's Chairman, Owen Poole, said that Alliance Group has for some time been evaluating a number of opportunities and the Levin Meats acquisition was the first that had satisfied the company's criteria.

The plant is well located and doubles Alliance Group's lamb and sheep capacity in the North Island, as well as providing cattle processing facilities. The acquisition will assist Alliance Group satisfy the level of farmer support it has in the North Island. The company's strategy has been to pursue growth and industry consolidation to match farmer support and market demand. Mr Poole said the company was pleased to be able to grow without increasing capacity in the industry. The acquisition also reduces the number of operators in the industry, contributing to industry consolidation.

Alliance Group Chief Executive, Grant Cuff, said the acquisition would increase product availability during the winter to meet out-of-season demand in the market, improving customer service and increasing sheepmeat revenues overall. He said that the company's strategy in the market is designed to achieve maximum contribution from every product item sold. Certainty and quality of supply, especially for chilled lamb, enhances annual promotional programmes, consumer awareness activities, product development and brand positioning.

While sheepmeat numbers for the year ahead are predicted to fall considerably, much is related to last year's drought and the company is confident the situation will improve. Mr Poole said Alliance Group has confidence in the industry's future and was taking a long-term strategic approach in the purchase of Levin Meats. Ownership of the plant will change on 6 November.

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