Launceston-based TasFoods Limited is buying North-West wasabi grower Shima Wasabi for nearly $3 million.
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TasFoods said the move would give Shima the capital and marketing expertise it needed to grow its operations to meet strong international and domestic demand for its high-value products.
Shima founder Stephen Welsh would be kept in charge of the business under the deal. It is similar to how TasFoods plans to keep Rob Nichols in charge of Nichols Poultry after its planned acquisition of Nichols is completed.
“We’ve invested heavily in crop R&D and market development for several years and we now have a sound platform from which to significantly expand the business,” Mr Welsh said.
“We’ve also been developing a number of new crops and the TasFoods deal will help us expand into other niche markets.
“We have a very clear vision for the business, so this timely sale to TasFoods will help realise that vision.”
The Northdown-based company grows authentic Japanese wasabi and says its products rival the best Japanese-grown wasabi. Its customers include top Australian restaurants, and it sells premium freeze-dried wasabi powder in Australia, Asia, North America and Europe.
TasFoods said most Australians had not tasted real wasabi because of its rarity and high value, with restaurants often using a horseradish substitute. He said people increasingly wanted to know about the providence and authenticity of food, but food labelling laws allowed “fake wasabi” products, which misled consumers.
“With TasFoods, we hope to change this and give consumers the opportunity to enjoy true Japanese wasabi, grown here in the pristine Tasmanian climate,” he said.
TasFoods CEO Jane Bennett said Mr Welsh and his wife, Karen, had achieved something remarkable. TasFoods said it was “adding to a stable of premium food brands that began with the acquisition of Meander Valley Dairy”.