Thornloe Cheese sold by Gay Lea to Triple "A" Cheese

The Thornloe Cheese Factory in the Temiskaming region of Ontario has been sold.

Gay Lea has announced it has entered into a letter of agreement to see Thornloe Cheese sold to Triple "A" Cheese, based in Mississauga.

This isn't the first time the company has been sold. In 2006, Parmalat threatened to close the company. Agricultural co-operative Gencor stepped in and the facility went on to produce award-winning cheese. Gay Lea purchased the plant in 2019.

The company initially said it hoped to invest more in sales and marketing, so it could eventually make the financial case to upgrade aging equipment. The company said an assessment of that last year came back at a cost of about $10 million. That cost prompted Gay Lea to shut down the facility and list it for sale.

Gay Lea said the letter of intent means Triple "A" Cheese would acquire all Thornloe Cheese assets, including the plant, brand, cheese recipes and plant supply quota.

Gay Lea said although it's a private sale and financial terms will not be disclosed, "the organizations have agreed to a significantly advantaged sale price for the buyer, as well as deferred payment terms.

"We are pleased to have found a buyer with an innovative vision for Thornloe Cheese," Suzanna Dalrymple, president and CEO of Gay Lea Foods said.

"The current Thronloe Cheese plant requires significant investment and is no longer financially viable. We believe a different concept, and a new facility, are needed for the brand to thrive in northern Ontario."

'Much work to be done'

Triple "A" Cheese said the new concept for Thornloe Cheese will likely include:

• A larger cheese manufacturing facility, with greater milk capacity, on a more suitable local property, serviced by municipal water and wastewater treatment.
• A tourist and local destination at the new location, complete with a fresh food store, coffee shop or deli restaurant, party rooms and a vibrant patio and outdoor space.
• Re-purposing the existing Thornloe Cheese location as a cold storage facility.

Triple "A" Cheese said it hopes the new operations will eventually employ more than 100 people, "while providing a permanent facility to process local dairy farmers' milk."

"All of us at Triple "A" Cheese are excited by the prospect of turning this beloved, local brand into a destination that services the community and attracts tourism to northern Ontario," Stefano Camaiani, president and CEO of Triple "A" Cheese said.

"We must caution, however, that this is an ambitious project and there are no shortcuts. A new facility is needed and comes with significant funding requirements. There remains much work to be done."