Dairyworks Limited sells Deep South Ice Cream

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The company said Deep South is successful, but ice cream is not its core business. Pic: Dairyworks

Dairyworks Limited, a subsidiary of New Zealand’s Synlait Milk Limited, has sold its Deep South brand and associated ice cream operations to Talley’s for an undisclosed sum, effective November 12, 2020.

Dairyworks CEO Tim Carter said, “The sale of Deep South enables Dairyworks to focus on our core business, explore new market opportunities, and deliver strong shareholder value.

“Dairyworks is going through a period of rapid expansion in our core categories of cheese, speciality cheese, yogurt, and convenience butters.”

Carter added that while Deep South is a successful part of the company’s current portfolio, ice cream is not its core business. He said the brand has strong growth potential for a business more focused on ice cream.

Synlait CEO Leon Clement added, “The decision to divest the Deep South brand and its operations reflects Synlait’s intention to increase value in line with our strategy.”