Traditional WA brand Harvey Fresh has made its first interstate acquisition after purchasing the Nugan Quality Foods juice processing business in New South Wales for an undisclosed sum.
The WA agribusiness yesterday announced that the fresh juice processing company would help to boost its export potential into South-East Asia.
Harvey Fresh exports about a third of its products but predicts this proportion will now jump to up to half of its total dairy and juice output.
Harvey Fresh director of finance John Scolaro conceded that selling juice into South-East Asia, where equatorial climates support a plentiful supply of fruit and vegetables, could appear a bold move.
But he said there were plenty of opportunities to provide juice concentrates, particularly during seasonal downturns and in geographic areas with limited varieties of fruit and vegetables.
Mr Scolaro said Harvey Fresh, which started life as a fruit juice company in 1986, had enjoyed a long supply relationship with NQF, another family business.
He rejected suggestions that Harvey Fresh, which holds the Coles private label milk contract in WA, was seeking to reduce its focus on dairy in the so-called milk wars. He said dairy products had long accounted for 70 per cent of its business, and this proportion would drop only marginally.
"The acquisition of NQF will provide a perfect growth opportunity for Harvey Fresh that is in line with our strategy, particularly through selling juice concentrates into growth markets in South-East Asia," he said.