Bega pushed out of plant-based drinks market after selling Vitasoy

Bega Group will be forced to find a new foothold in the rapidly growing plant-based beverages market after agreeing to sell its 49 per cent stake in Vitasoy Australia for $51 million.

Bega Group jointly owns Vitasoy Australia with Hong Kong-listed Vita International which in October last year announced it would exercise its right to acquire Bega’s half of the business.

The $26.8 billion Hong Kong giant’s first attempt to acquire Vitasoy was rebuffed, with Bega arguing its valuation of $27.5 million was too low.

A reassessment by an independent expert has now valued the stake at nearly double that amount, the Australian dairy giant said in a statement.

“[Bega subsidiary] National Foods Holdings Limited will sell and Vita International will buy NFHL’s shareholding in Vitasoy Australia for $51 million,” the statement said.

Another Bega subsidiary, BDD Milk, will assist in the transition by selling and distributing Vitasoy Australia products until the end of March.

Bega’s share price has ticked up at the news, lifting nearly 1.3 per cent to $4.01 at 11am.

Vitasoy Australia makes a range of plant-based milk, beverages and yoghurt products sold in Australia and New Zealand as well as overseas, and is particularly popular in Asia among lactose intolerant people.

The $1.2 billion cheesemaker has indicated it will be seeking other ways to re-enter the category.