Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Charlie’s Finds Perfect Match in Phoenix Organics

News release

Charlie’s Finds Its Perfect Match in Phoenix Organics

Premium beverage company Charlie’s Group Limited today announced the group’s purchase of popular premium beverage maker and distributor Phoenix Organics Limited, and associated companies, including all of its brands.

In a move Charlie’s CEO Stefan Lepionka says will significantly augment Charlie’s current market capacity, Charlie’s will take ownership of the 19 year-old company that has become one of New Zealand’s most successful beverage companies.

Phoenix Organics produces a range of organic juices and healthy sparkling drinks that are well known as premium café favourites across the country. Charlie’s will now own these brands, plus acquire the company’s west Auckland manufacturing and warehousing facility.

On top of this, the Phoenix Organics deal gives Charlie’s access to a robust route distribution system catering to more than 3,500 premium and super premium cafes, and service stations in New Zealand and Australia. Phoenix Organics has in excess of 540 fridges in New Zealand and Australia.

Lepionka says the Phoenix Organics deal is the most significant move Charlie’s has made to date, but sits in line with the industry consolidation plans the company outlined during listing procedures earlier in the year and reconfirmed at its recent annual meeting of shareholders.

“We have been quite clear that our listing on the NZSX was in part to raise capital for the right acquisition should it present itself,” he says.

“Phoenix Organics is certainly that opportunity. Phoenix Organics and Charlie’s share similar business philosophies on product quality and marketing, and the purchase fulfils our desire to acquire a material business that complements our existing assets, grows our top line profitably and enhances our current capacity in manufacturing and distribution.”

Phoenix Organics head Chris Morrison is pleased the deal has gone ahead with a like-minded company like Charlie’s. Phoenix Organics has been growing at 28% per annum since 2002 said Morrison.”

“We have built our business on honesty, integrity and credibility and in that respect there is no better match than Charlie’s,” he says.

“We are confident that under new ownership, Phoenix Organics will continue to grow its existing markets and pursue opportunities with the same commitment to customers that we have always shown.”

The purchase price for the acquisition under the respective agreements will be satisfied by the payment, of $10 million in cash in two instalments. The first instalment of $8 million is payable on 20 December 2005, and the second payment of $2 million is payable on 28 February 2006.

Roger Gower, chairman of Charlie’s, said “the payments would be met from the Company’s own resources, including calling the recently announced equity loan facility, and an additional underwritten placement of $3.5m shares at a price not less than 12.93 cents per share from selected third party private investors, under the authority granted by shareholders at the annual meeting on Wednesday.”

Gower added “The Phoenix Organics group of companies was a compelling offer and the purchase price reflects the strong and premium market position of the company, its very strong growth profile and the nascent Australian business which seems to have huge potential. The addition of the business to Charlie’s will add significant revenues and further market opportunities here and abroad.

Charlie’s intends to maintain the current Phoenix brands and operation in their entirety, treating its own existing Not From Concentrate Juice and Smoothy offering as a separate entity at this stage. Charlie’s will keep all the staff and management of Phoenix Organics.

Once the acquisition is bedded in the respective organisations will work together to integrate aspects of the operations in a way that maximises the synergies available.

“Phoenix Organics is a well-loved brand and we want that to continue. As for other plans, it really is too early to say,” says Lepionka; who did add “the strengths of the respective companies were in market segments where the other was not as strong. This is a significant acquisition for both companies.”

“What we do know is Charlie’s will always be Charlie’s and Phoenix Organics will be Phoenix Organics. It’s just great to have two market leading brands –in Not From Concentrate and Organics - now in the same stable.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


  • Bill Bennett on Tech