A prospective buyer has been found for the shuttered Thornloe Cheese factory.
Gay Lea Foods announced on July 3 that it has signed a letter of intent with Triple “A” Foods, a Mississauga-based, family-owned company that’s been producing dairy products for more than 25 years.
Under the agreement — which is tentative and non-binding — Triple “A” Cheese will seek financing to build a new cheesemaking facility near the current location. Should the sale go through, Triple “A” Cheese would acquire all Thornloe assets, including the plant, brand, cheese recipes and plant supply quota.
In a news release, Gay Lea said the financial terms of the sale would not be disclosed; however, “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,” said Suzanna Dalrymple, president and CEO of Gay Lea Foods, in the release.
“The current Thornloe 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, and we’re hopeful the considerable effort invested in this project — by both organizations — will deliver that outcome.”
Thornloe Cheese, located 17 kilometres north of New Liskeard, near the village of Thornloe, closed suddenly last October, causing much public outcry. The beloved Highway 11 business, popular with locals and tourists, had been in operation since 1940.
It’s gone through multiple owners over the years; Gay Lea purchased the facility in 2019.
Gay Lea’s release emphasized that a condition of the sale is Triple “A” Cheese securing funding to build a new facility.
The company said the two parties have been working collaboratively in discussions with financiers, including government agencies, to gauge interest in financing the project.
If financing can be secured, the sale would close in 2025, and the new plant would open in 2027 or 2028.
Plans for a new plant include:
- a larger cheese manufacturing facility, with greater milk receiving capacity, on a more suitable local property, serviced by municipal water supply 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; and
- repurposing the existing Thornloe Cheese location as a cold storage facility.
Triple “A” Cheese estimated the new operation would employ more than 100 people, which is double the staff of the previous facility.
“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,” Stefano Camaiani, president and CEO of Triple “A” Cheese, said in the release.
“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.”
According to the release, Triple “A” would consider bringing back cheesemaking at the current Thornloe plant, on an interim basis, using equipment repurposed from its operations.
Gay Lea said it would continue skimming grassfed milk, which is used to make butter, at the plant until October.
At that time, Gay Lea will stop receiving grassfed milk at the plant, but said it will keep paying farmers the grassfed premium until March 31, 2025.
