Burns Philip (BPC) is part
of an industry that in NZ and Ausy is still going through
restructuring afetr 20 years of change.
For those who can remember back, there used
to be a huge range of smallgoods processors in NZ, and even
greater numbers in Ausy. I can think of Tiki, Kiwi,
Whanganui Mild Cure, Tenderkist, hellaby Peach, Hydra,
Huttons, and at least another 10 sudstantial
producers.
To supply this group there also existed a
range of suppliers. BPC wasnt part of them then, but well
established names at the time were: Globus, Mauri Brothers,
Dunnighams, Lewis Grey, Lindgrens, and probably another 3 or 4
rather large companies. These companies also supplied
the range of other food producers.
Today we have one or two smallgoods
producers that have replaced all those who used to exist. The
main one is Huttons (who own many other bands). The bakery
industry has reduced to one or two big players. Consequently
the supplier industry has also shrunk. Lindgrens no longer
exists, Lewis Grey is almost out of the industry, Mauri Bros
became a non player a long time ago, Globus recently closed
all its offices and sold its ingredients division to an
another marketer.
BPC's part in food industry supply came
out of the demise of Lindrens. It was very complicated -
it went thru German or Dutch hands - and most watchers thought
it was just a matter of when , not if , it would go
under.
I am surprised that it hasnt gone under. I
do think the dividends are not 'real' in that I just cant see
where the profits are coming from - so I can only assume that
they are paid out of borrowed money - in an effort to make it
look good in the hope that someone will come along and sell
it. That some one would be a greedy food producer who
wants to vertically integrate, or perhaps a carbohydrate
and/or protein or raw material producer who wants to get
closer to the market - like a dairy company (Fonterra??)
making large volumes of milk powder or food
casein.
Got to give it to him - Graeme Hart seems to
be able to organise good deals for himself.