Dairy has surged during the COVID-19 pandemic and dairy processor Saputo in Burnaby is reporting strong retail sales as the COVID-19 pandemic alters consumer buying patterns.
The company, which operates its plant on a 20-acre parcel of land at Lougheed Highway and Sperling, but has outlets across the country, said recently that it has seen a surge in its third-quarter profit as sales at grocery stores outweighed weak demand from restaurants, cafeterias and other foodservice costumers.
The dairy processor and cheese manufacturer said its profit climbed 6.1% to $209.8 million, up from $197.8 million in the same quarter a year earlier, even as its revenue edged lower.
"For the first time since the pandemic started, our volumes were on par with last year," Lino Saputo Jr., Saputo's board chairman and CEO, told analysts during a conference call.
"Thanks to our strong portfolio of retail brands and by adapting our product offering early on in the pandemic, we captured new opportunities in the retail market segment," he said. "We also benefited from increased sales volumes in the industrial markets."
Now it is beefing up its non-dairy cheese and value-added ingredients holdings with two new acquisitions.
The processor and cheese manufacturer said Tuesday it had completed the acquisition of Bute Island Foods, a manufacturer, marketer and distributor of vegan cheese.
The Scottish company services both the retail and foodservice markets under its award-winning vegan brand Sheese as well as through private label brands.
Saputo also entered into an agreement to acquire the Reedsburg, Wis., facility of Wisconsin Specialty Protein, which makes value-added ingredients like goat whey, organic lactose and other dairy powders.
The dairy company said the two acquisitions, which cost a combined $187 million, fit with the company's new global strategic plan to be discussed during its year-end earnings presentation next week.
- With files from the Canadian Press
