A 116-year-old train and ginger-themed amusement ride are the latest additions to the portfolio of ginger grower Buderim group.
The iconic Queensland manufacturer and owner of tourist attraction, The Ginger Factory, has faced headwinds recently as sales slowed due to overseas competition.
A $1.2 million drop in export sales last year resulted in a $5 million loss for Buderim (ASX:BUG) as ginger-lovers switched to cheaper Thai and Chinese ginger.
“While very disappointed with the 2017 result, we are excited about the opportunities and potential benefits presented by our new investment partners, however the turn-around will take some time,” chairman Stephen Morrow said in Buderim’s 2017 annual report.
In an attempt to adapt, Buderim has recently launched a range of alcoholic ginger beers mixed with rum or vodka as well as non-alcoholic energy drinks.
The new products are key to ensuring the future of the 76-year-old company, Mr Morrow said.
“We are the home of Buderim ginger, but we continue to build relevance and change with the market – we have introduced snack packs for those on the go as well as broadened our range of ginger beverages.”
In an effort to further diversify, Buderim announced on Tuesday it had bought out the operator of two amusement rides at The Ginger Factory tourist attraction.
Finance head Andrew Bond told Stockhead the purchase was part of a “refresh”.
“For a number of years we have operated those rides in a 50-50 joint venture but this means from the end of the month we will operate those rides 100 per cent in our own interests,” he said.
“This enables us to look at the offerings on site and what potential modifications we could pursue.”
The Ginger Factory property in Yandina was listed for sale in July 2016, after a review of the group’s capital structure but withdrawn after a $20 million investment by a Chinese snack food company and investment firm Wattle Hill.
Australian ginger farmers produce about 8000 tonnes a year, worth about $32 million according to the Australian Ginger Industry Association.
Buderim shares last traded at 27c.