Csr Quits Macadamia Game After 20-year Run
Sydney Morning Herald
Thursday October 30, 1986
CSR Ltd has finally pulled out of the macadamia nut business after a patchy but interesting struggle lasting more than 20 years.
The company yesterday announced the sale of Mac Farms of Hawaii Inc to a company controlled by Arnotts Ltd for an undisclosed sum. Mac Farms, by far the biggest part of the macadamia arm with 145,000 trees, will be effectively subject to a management buy-out. Australian Mr Lance O'Connor and American Mr Tom Modisette, who, respectively, managed the operations and marketed the products, will take up the other 49 per cent.
The two men last month bought up CSR's Australian plantations, which reportedly are about one third the size of the Hawaii operation. CSR bought into Hawaii in 1981.
The chief manager, marketing, for CSR's administration and policy group, Mr Peter Currie, said he understood the two operations eventually would be joined.
A joint statement from CSR and Arnotts yesterday said the purchase was an opportunity for Arnotts to expand its involvement in the snackfood industry in Australia and to become involved in a high-growth segment of the snackfood market.
Macadamia nuts have not been a high-profile part of CSR's activities and, although they were a logical fit when CSR depended for its income on sugar growers, the company has long been looking for a financially satisfactory way of getting out of the highly specialised growing business and using the money elsewhere in something more familiar.
© 1986 Sydney Morning Herald