29 Mar 2016

Kiwi Pacific Foods joint venture to wrap up

2:09 pm on 29 March 2016

Shares in listed food and beverage industry investor Veritas have fallen sharply today after it said its Kiwi Pacific Foods joint venture was to be wound up.

Kiwi Pacific is jointly owned by Veritas and Antares, the owners of the Burger King franchise, and it makes meat patties for Burger King.

The two companies have been at odds for the past year about supply arrangements, and Antares gave notice last year it would end the venture.

When Veritas opposed the move, the two went to arbitration - which backed Antares. Veritas then looked at a legal challenge to the arbitration decision.

However, the two companies said they looked at all the options and decided to wind down the business and sell its assets.

After the payment of staff and creditors, the pair will split the proceeds.

Veritas said it had already made provision for any losses from the joint venture in the first-half loss of $4.8 million.

Get the RNZ app

for ad-free news and current affairs