GreenSpace Brands, the loss-making Canadian food business, has launched a review into “strategic alternatives”.

A year after rolling out the Project Fit cost-savings programme on the heels of two divestitures – Kiju organic juices and the Rolling Meadow Dairy brand – Toronto-listed GreenSpace said it is seeking to “enhance shareholder value” by looking into a “range of potential strategic alternatives”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Revealing Project Fit in May last year, the company said it planned to reduce the SKU count across the business by around 60% during the course of 2021 to focus on products with “strong consumer demand” in order to boost gross margins.

“Reducing portfolio complexity will result in scale advantages with our supplier base, lower inventory holding costs, reduce waste and improve retail visibility and retail replenishment of our best-selling SKUs across customer channels,” GreenSpace, which owns the Central Roast snack brand, said at the time.

Now the business has hired financial advisors to assist in the review after reporting a CAD20.8m (US$16.5m) loss in the year to 31 March 2021.

“There can be no assurances that the exploration of strategic alternatives will result in any transaction,” the Go Veggie plant-based cheese maker said in a statement on 2 June.

It added: “GreenSpace does not intend to discuss or disclose developments with respect to the process unless and until it is otherwise determined that further disclosure is appropriate or required by regulation or law. No formalised timetable has been established for the completion of the strategic review.”

GreenSpace’s losses in its last full financial year narrowed from CAD33.7m in fiscal 2020. It posted revenues of CAD29.4m in 2021, down from CAD49.1m a year earlier.

Revenues have continued to decline in the new fiscal year, falling to CAD14.2m in the nine months to 31 December, from CAD24.5m. GreenSpace posted a loss for the period of CAD4.9m versus a CAD6.9m loss a year earlier.