Cobram Estate Olives Secures Funding for US Expansion

What's Happening?

Cobram Estate Olives (CBO), an Australian olive oil producer, has secured commitments for funding amounting to AUD 175 million to support its expansion in the United States. The company completed a share placement with institutions priced at AUD 3.2 per share and plans to raise an additional AUD 10 million through a non-underwritten share purchase plan. The funds will be used to acquire land for developing approximately 1,600 hectares of olive groves, with the project expected to be completed by the end of 2027. CBO aims to increase its total freehold land in California to around 4,500 hectares, with planted grove areas expected to yield over nine million liters of extra virgin olive oil annually at full maturity.

Why It's Important?

The expansion of Cobram Estate Olives into the US market is significant as it reflects the growing demand for high-quality olive oil and the potential for increased production capacity. The US market has become increasingly important for CBO, accounting for over a quarter of its olive oil sales. The funding will enable the company to enhance its production capabilities and potentially surpass the success of its Australian operations. This move also highlights the strategic importance of the US market for international agricultural producers seeking to capitalize on consumer trends and expand their global footprint.

What's Next?

Cobram Estate Olives plans to complete the development of its new olive groves by 2027, with the goal of significantly increasing its production capacity in the US. The company will focus on expanding its market presence and leveraging its brand to capture a larger share of the US olive oil market. As the project progresses, CBO will likely explore additional opportunities for growth and innovation in its production processes to meet the rising demand for premium olive oil products.