Bega Group has sold the historic factory in Port Melbourne that has manufactured Vegemite for more than 75 years.
As part of company rationalisation and reducing debt, the company has sold the factory at 1 Vegemite Way for $114.6 million.
The company will lease back the factory from new owner Charter Hall for an initial 15 years, with two additional five year options.
According to a statement: “The Bega Group intends to continue the production of iconic brands including Vegemite and Bega Peanut Butter at the site.
“The funds from the sale will reduce debt and further support the Bega Group’s strategy and transition to a company focused on market leading brands.”
Bega, the largest food manufacturer remaining in Australian ownership, has been on a rapid expansion trail, buying Vegemite from Mondelez’s Australia for $460 million and in 2020 buying the Lion Dairy and Drinks business for $534 million.
The Lion purchase brought with it other well known brands including Dare, Farmers Union, Big M, Masters, Dairy Farmers, Yoplait, Juice Brothers, Daily Juice, Pura and Masters.
This has necessitated restructuring of manufacturing sites and brands and a business simplification programme, which has led to the propertyy divestment.
Picture: Vegemite on the Port Melbourne production line.