It proudly returned the Vegemite brand to local ownership in a $460 million purchase in 2017 from global conglomerate Mondelez. The sharp jump in costs has been a temporary setback for Bega as it attempts to build itself into a “national champion” in Australian food. The tough conditions have also increased the prospect of more buyouts in a sector where two big players in the salmon industry, Tassal and Huon, have both been taken over by offshore groups in the past 18 months.
It has resulted in the share prices of a string of groups including Vegemite owner Bega Cheese, fruit and vegetable grower Costa Group and gourmet food group Maggie Beer Holdings being beaten down by 25 per cent or more in the past year. Soaring inflation and raw material costs have dented the profit margins of Australian food companies, which are battling a “lag” in passing on the full extent of those costs to shoppers, who are now facing their own cost-of-living pressures.