LJM and Multipack merge to take on $300m co-packing industry

Two major NSW co-packing companies LJM NSW and Multipack have merged to form a new entity in Australia’s $300 million co-packaging industry.

Multipack LJM will be the largest secondary co-packer in New South Wales, moving approximately 5,000 pallets per day of packed goods for FMCG, food, beverages, spirits and pharmaceuticals companies.

The combined businesses employ over 500 people with a shared warehouse footprint of 50,000 sqm across seven sites in New South Wales and Victoria.

“Co-packing is an industry where scale brings scale which was the driver behind the merger. It is estimated that the co-packing industry in Australia is worth approximately $300 million,” Lance Miles director and founder at LJM said in a statement.

“With turnover of approximately $75 million, the consolidated entity
captures approximately 25 per cent of the market share.”

The new entity will have a similar market share to that of LJM’s parent parent company in Victoria.

Adam Rawson, director at Multipack said co-packing is a growing sector and forms an integral part of the supply chain.

“In the past co-packing was often viewed as an ad-hoc service, however today many of Australia’s leading FMCG manufacturers and importers that stock the shelves of Coles, Woolworths, Aldi, Costco or independent retail chains use co-packing providers to handle entire product ranges,” Rawson said.

The industry is highly regulated to ensure high standards and Rawson said only the bigger players will have the man power to meet “the growing list of requirements”.

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