One of the most uniquely Aussie food factories has been served up to investors.
The home of Vegemite and other famous spreads like peanut butter are being sold by relatively new owner Bega Cheese, which plans to lease back the building.
So don't fear Vegemite lovers, there's no plans to stop producing Australia's iconic yeast extract.
The former Kraft factory at 1 Vegemite Way in Port Melbourne is in a landmark location it used to share with Holden, where its first cars were built.
Bega hopes to make about $150 million from the 36,915sqm factory sale and immediately lease it back on a long-term deal.
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US snack food maker Mondelez (Ritz, Cadbury) sold the Kraft factory, along with its branded products, to Bega for $460 million in 2017.
Bega's purchase brought Vegemite back into Australian ownership, the old factory and former administration block might not be.
After the purchase, Bega and Mondelez were embroiled in a legal stoush over the use of the bright yellow packaging of peanut butter, which ended up costing Mondelez $9.25 million.
Bega now wants to free up capital by selling the old factory.
Vegemite was invented by chemist C.P. Callister in 1923 when an Australian food manufacturer requested a product similar to British Marmite.
The Fred Walker Company, which would later become Kraft Food Company, hired the young chemist to develop a spread from one of the richest known natural sources in the Vitamin B group - brewer's yeast.
Today more than 22 million jars of Vegemite are sold each year.
Vegemite will celebrate its 100th birthday on October 25, 2023.
Bega has appointed Colliers as exclusive selling agents and law firm Addisons is acting as advisor.
The Port Melbourne factory occupies a six hectare island site in the Fishermans Bend urban regeneration precinct, about 5km from Melbourne's CBD.
The factory is being sold by an expression of interest campaign
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Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
