Amuri’s Regina expands

Press, 6 October 1989, Page 21

Amuri’s Regina expands

Diversification was the reason for Amuri recently expanding its Regina stake, Amuri’s managing director, Mr David Brown, said yesterday. Amuri increased its stake in the Oamaru confectionary maker from 50 per cent to 80 per cent by buying the holding of the Oamaru Licensing Trust. The remaining 20 per cent is owned by management.

Regina makes sweets and gum products and sells them in New Zealand and Australia.

“The purchase of the Oamaru Licensing Trust shares is a continuation of the strategy and policies implemented after Amuri saw the need to diversify its property and motor-vehicle interest,” said Mr Brown.

Amuri is seeking cash-gen-erating assets to provide imputed dividends to its shareholders.

“Amuri sees very strong growth for Regina in the domestic, Australian, and Asian markets,” Mr Brown said.

Under Regina’s new ownership, management and administration staff were replaced; the head office and Auckland manufacturing were returned to Oamaru; turnover rose more than 100 per cent, the product range was reduced from 130 to 70 product lines; packaging was redesigned; and products

were redeveloped. Stage two of redevelopment required new machinery and expansion of the factory. “Such is the demand for both confectionery and gum that it has necessitated 24hour shifts much sooner than contemplated. Stage two is under way with new machinery with a value of SIM shortly being installed.”

Turnover in the current year had more than doubled from the purchase of Regina

to SISM, Mr Brown said. Staff numbers have increased by 30. Regina has recently opened a sales centre and warehouse in Sydney and the first 10 container loads of product from New Zealand will arrive shortly; all have been sold. The managing director of' Regina, Mr Nat Craig, said an announcement would be made shortly regarding a significant Australian franchise development.