In a bid to enhance its global capabilities, Lamb Weston Holdings, Inc. Wacquired Marvel Packers Pty Ltd (Marvel) – a frozen potato processor in Australia. This operator of frozen potato processing and storage facilities in Hallam, Victoria improves Lamb Weston’s global production capacity by about 50 million pounds.
In an article published today on the Nasdaq website, Zacks Equity Research writes that Lamb Weston will now own and operate 16 processing facilities internationally, and an additional nine facilities in collaboration with its joint venture partners. This acquisition not only opens up new avenues but also provides an opportunity to tap Australia’s 1.1-billion-pound market.
Zacks Equity Research writes that Lamb Weston’s focus on its strategic growth initiatives via constant investments in enhancing capacity, improvement of customer services, innovations and increased limited time offerings is an added positive.
It also expects continued robust demand for frozen potato products and a tight production capacity in the current fiscal year.
Although management anticipates to face hurdles like a poor potato crop at its European joint venture, Lamb Weston/Meijer, it expects to offset these challenges with solid pricing and cost-saving initiatives as well as opportunities in its North American and export ventures.
All said, the company is well positioned to achieve its fiscal 2019 goals.
Read the full article on the Nasdaq website