Land O'Lakes buys Beatrice cheese plant

Land O'Lakes Inc. has purchased a California-based Beatrice Group cheese plant as part of the co-op's efforts to grow its West Coast presence.

The 169-employee, 70,000-sqft. plant, which makes mozzarella and cream cheese, was sold for an undisclosed amount. The Gustine-based facility is intended to boost Land O'Lakes value-added cheese business, company leaders said. In addition, LOL has inked a co-packing deal with Beatrice for manufacturing cream cheese.

"This acquisition benefits the mozzarella and cream cheese businesses, both of which exhibit solid growth and earnings potential," said Jack Prince, executive VP and COO of Land O'Lakes Industrial Group. "The increased production this acquisition brings to our system, particularly in mozzarella, reflects our focus on efficiently serving our needs. This acquisition will also enable us to diversify our cream cheese production by introducing a variety of new package sizes."

Current plant operations and service to existing customers continues under the takeover, LOL leaders said.

The acquisition builds on the Arden Hills, MN-based co-op's other California-based facilities, including its Tulare plant that makes cheese, whey, butter/powder and other dairy products and its cheese plant in Orland.

Beatrice officials indicated that the deal doesn't mean the company is planning on leaving the cheese industry. The ConAgra Inc. division will continue operating in the retail, foodservice and industrial segments with such brands as County Line, Treasure Cave, Pauly and others.

"We see this sale as a positive both for Beatrice and its customers," Beatrice President/COO Rich Scalise said. "Land O'Lakes has a solid reputation for product quality, and with our co-packing arrangement, products produced at this facility will continue to be made under our brand name."

Land O'Lakes is a nearly $6 billion operation. Beatrice parent company ConAgra is a $25 billion concern.

Edited by Gerry Clark