Thornloe Cheese may have a new lease on life, after its announced closure in October 2023.
Owner Gay Lea Foods has announced the plant is set to be purchased by Triple “A” Cheese, a Mississauga, Ontario-based cheesemaker.
The co-operative says it has entered into a letter of intent with Triple “A” Cheese, so the deal is tentative, allowing the would-be purchaser the opportunity to secure financing for a new construction of a cheesemaking plant near the current location.
The proposed terms of sale would see Triple “A” Cheese acquire all Thornloe Cheese assets, including the plant, brand, cheese recipes, and plant supply quota. Thornloe Cheese was a main user of the Ontario grass-fed dairy supply.
While this is 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, says Gay Lea.
Gay Lea had announced in October that the facility was no longer viable as a cheesemaking plant and would wind down operations. The new buyers are planning to build a new, larger facility and create a “new vision” for the existing facility.
That vision includes:
- A larger cheese manufacturing facility, with greater milk receiving capacity, on a more suitable local property, serviced by municipal water supply and wastewater treatment.
- Plans for a tourist and local destination, complete with a fresh food store, coffee shop or deli restaurant, party rooms, and a patio and outdoor space
- Re-purposing the existing Thornloe Cheese location as a cold storage facility
Triple “A” Cheese says its plan will eventually employ more than 100 people (double the prior Thornloe Cheese employee population), 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 serves the community and attracts tourism to Northern Ontario,” said Stefano Camaiani, president and CEO, Triple “A” Cheese. “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.”
If financing efforts are successful, the companies expect the sale would close in 2025, with the new plant to open in 2027 or 2028. Triple “A” Cheese will also explore the possibility of restoring limited interim cheesemaking at the current Thornloe plant, using equipment repurposed from its operations, the company says.
Gay Lea Foods will continue skimming grass-fed milk at Thornloe Cheese until October 2024, as it has done since the plant stopped making cheese in October 2023. In October, Gay Lea Foods will stop receiving grass-fed milk at Thornloe Cheese, but will continue paying farmers the grass-fed premium until March 31, 2025.
