Damon Mcknight
Bega Peanut Butter is marketed as an Australian brand, but questions have been raised about the percentage of Australian ingredients used in its products. Bega Cheese Limited, the company that owns Bega Peanut Butter, has a long history in Australia, starting as an agricultural cooperative in the town of Bega, New South Wales. The company has a strong tradition of partnering with Australian farmers and is working to increase the supply of Australian peanuts. However, some reports suggest that Bega Peanut Butter contains less than 10% Australian ingredients, with the company citing a lack of peanut farmers in Australia as the reason for sourcing ingredients overseas. Despite this, Bega continues to market its peanut butter as Australia's favourite.
| Characteristics | Values |
|---|---|
| Company | Bega Cheese Limited/Bega Group |
| Company Type | Australian diversified food and drinks company |
| Company History | Started in dairy, expanded to include Vegemite, ZoOSh, and Bega Peanut Butter in 2017 |
| Peanut Butter Factory Location | Port Melbourne, Australia |
| Peanut Source | Australia and overseas |
| Peanut Farmer Support | Yes, Bega works with Australian peanut farmers to increase local peanut production |
| Ownership | Public company listed on the Australian Securities Exchange |
| Shareholders | Close to half of the shares are held by Bega's farmer-suppliers |
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What You'll Learn
Bega Group is an Australian company
The Bega Group is an Australian food and drinks company with manufacturing sites in New South Wales, Queensland, Western Australia, and Victoria. It was founded as an agricultural cooperative in the town of Bega, New South Wales, by dairy suppliers. In 2011, it became a public company when it listed on the Australian Securities Exchange. The Bega Group is one of the largest companies in the Australian dairy sector, with a base milk supply of approximately 750 million litres per annum as of 2018.
The company has a diverse range of products, including spreads, dairy consumer packaged goods, and other grocery products. Its flagship brand, Bega Cheese, holds a significant share of the Australian retail cheese market. In addition to cheese, the Bega Group also owns well-known brands such as Vegemite, Farmers Table, Zoosh, Picky Picky, Tatura, and Dairymont.
In recent years, the Bega Group has expanded its portfolio to include iconic Australian brands such as Vegemite and ZoOSh, as well as Bega Peanut Butter. The Bega Peanut Butter factory in Port Melbourne has been crafting Australia's favourite peanut butter for over 55 years, using the same recipe and the best Hi-Oleic peanuts to deliver a fresh roasted taste.
Bega has a strong tradition of partnering with Australian farmers and is committed to supporting the local peanut industry. In 2018, the company purchased the Peanut Company of Australia (PCA) to ensure the sustainability and growth of this fragile industry. Bega is working closely with over 100 farming families in Queensland to increase peanut production and drive the industry's long-term viability.
The Bega Group has also undertaken a digital transformation initiative, implementing Infor CloudSuite ERP to modernise its enterprise technology infrastructure with the support of the enterprise digital solutions company Fortude. This has helped streamline processes, reduce system testing times, and improve operational efficiency.
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Bega Peanut Butter is made in Australia
In 2017, Bega expanded its portfolio to include Vegemite, ZoOSh, and Bega Peanut Butter. The peanut butter factory in Port Melbourne has been crafting Australia's favourite peanut butter for over 55 years, using the same recipe to deliver a Never Oily, Never Dry peanut butter.
Bega sources the best Hi-Oleic peanuts, rich in good fats, to create the freshest roasted peanut taste. While Bega Peanut Butter is made in Australia, the company has been transparent about the low levels of Australian ingredients in its traditional smooth, light, and chunky spreads (less than 10% Australian products). This is due to the challenge of sourcing enough peanuts from Australian farmers to meet demand.
Bega has a strong tradition of partnering with Australian farmers and is committed to supporting the local peanut industry. In 2018, they purchased the Peanut Company of Australia (PCA) to ensure the industry's sustainability. Bega is working with over 100 farming families in Queensland to increase peanut production and drive the growth of this fragile primary industry.
Despite the low percentage of Australian ingredients in its traditional spreads, Bega Peanut Butter is indeed made in Australia, and the company is dedicated to supporting local peanut farming and production.
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Bega Peanut Butter contains few Australian ingredients
Bega is an Australian food and drinks company with manufacturing sites in New South Wales, Queensland, Western Australia, and Victoria. Bega Peanut Butter has been made in Port Melbourne for over 55 years. However, despite being marketed as a homegrown product, Bega Peanut Butter contains few Australian ingredients.
The peanut butter spreads from Bega use less than 25% Australian ingredients, with some labels containing no local products. Bega's traditional smooth, light, and chunky spreads contain less than 10% Australian products, with the exact number unknown. The company has acknowledged the low percentage of Australian ingredients in its products, attributing it to a lack of peanut farmers in the country.
Peanuts are a tricky crop to grow in Australia due to the specific conditions they require, such as the precise amount of water and sunshine. While the sun-ripened fields of Queensland are optimal for peanut cultivation, drought and competition for land have made it challenging for farmers to produce enough peanuts to meet the demand. As a result, Australia now grows less than 50% of the peanuts consumed in the country, with the rest sourced from overseas.
Bega has expressed its commitment to supporting Australian peanut farmers and increasing the production of Aussie-grown peanuts. In 2018, the company purchased the Peanut Company of Australia (PCA) to ensure the sustainability and growth of the local peanut industry. Bega is also working in partnership with over 100 farming families in Queensland to boost peanut production and the sustainability of the industry for future generations.
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Bega supports Australian peanut farmers
Bega is an Australian diversified food and drinks company with manufacturing sites in New South Wales, Queensland, Western Australia, and Victoria. The company has a strong tradition of partnering with Australian farmers. In 2018, Bega purchased the Peanut Company of Australia (PCA) to ensure the growth and sustainability of the peanut industry in Australia.
Bega is working in partnership with Australian peanut farmers, investing in both peanut production and processing initiatives. There are over 100 farming families in communities across regional Queensland who are relying on this investment to support the increase of peanut production and sustainability of the industry for generations to come. Bega is dedicated to crafting Australia's favourite peanut butter, sourcing only the best Hi-Oleic peanuts, rich in good fats, for the freshest roasted peanut taste.
Bega has been open about the challenges of sourcing Australian ingredients for its products. On its packaging, the company has acknowledged that Australians eat more peanuts than the local industry can supply. Bega has also stated that it is working with Aussie farmers to increase local peanut production.
In addition to its commitment to supporting Australian peanut farmers, Bega has a long history in the dairy industry. Close to half of the shares publicly traded by the company are held by Bega's farmer-suppliers, and it is currently one of the largest companies in the dairy sector in Australia. Bega's flagship brand holds a significant share of the Australian retail cheese market, and the company also owns well-known brands such as Vegemite, ZoOSh, and Dare Iced Coffee.
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Bega's dispute with Kraft Heinz
Bega Cheese Limited is an Australian company with a long history in the dairy industry. In 2017, Bega expanded its portfolio to include Vegemite, ZoOSh, and Bega Peanut Butter. The company has a strong tradition of partnering with Australian farmers and is working to increase the supply of Australian peanuts.
In 2017, Bega purchased the Kraft factory from Mondelēz International as part of its acquisition of most of Mondelēz's ANZ grocery business. This included the Vegemite brand, which Bega rebranded with its moniker. However, Kraft Heinz, which had sold the factory to Mondelēz in 2015, argued that Bega's new packaging was too similar to its own and that Bega only had the rights to the packaging until the end of 2017.
Bega and Kraft Heinz became involved in a lengthy legal dispute over the labelling and packaging of Bega's peanut butter products. Bega argued that it had the right to continue using the yellow lid and labels on its peanut butter under a previous licensing agreement between Kraft Heinz and Mondelez International. In 2019, Bega won the legal dispute, with the Full Court of the Federal Court of Australia granting the company the right to continue using the labels on its smooth and crunchy peanut butter products. Kraft Heinz appealed the decision in 2020, but the case was dismissed.
In 2021, Bega and Kraft Heinz reached a confidential settlement, with Kraft Heinz agreeing to pay Bega AUD9.25 million (US$7.1 million) to cover legal costs. The settlement resolved all outstanding issues between the parties regarding the right to use the peanut butter trade dress and the legal proceedings.
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Frequently asked questions
Yes, Bega Peanut Butter is Australian-owned. The Bega Group is an Australian food and drinks company with manufacturing sites in New South Wales, Queensland, Western Australia, and Victoria.
Bega Peanut Butter is made from Hi-Oleic peanuts, which are rich in good fats. The company sources these peanuts from local Australian farmers and also from overseas.
Bega Peanut Butter is manufactured in Port Melbourne, Australia. The peanut butter has been made in the same place for over 55 years, even before it became a part of the Bega portfolio.
