Inside Ian Thorpe’s struggling food business

Revelations that Ian Thorpe’s business empire has been knocked about by the global financial crisis have been highlighted by the poor performance of his food company Thorpedo Foods, which saw profits more than halve in 2008-09.

Reports in News Limited newspapers on the weekend said Thorpe’s friend and radio broadcaster Alan Jones was so concerned with Thorpe’s financial affairs that he stepped in and called Westpac chief executive Gail Kelly personally to ask her to help.

“It was pretty obvious that he wasn’t all that well sorted,” Jones told the Herald Sun. “There were a lot of loose ends and he didn’t know where all his money and investments were.”

“Ian’s had no training in this area because he’s spent so much of his life in a swimming pool. So I rang Gail Kelly for him. Simple as that.”

Thorpe told the newspaper that he would bounce back from the problems.

“Like most individuals, I have always kept my private business private. The fact is I have restructured my affairs with a bank. I am happy where I am at, and this week finalised some new commercial relationships, which will be announced shortly.”

Thorpe has a number of business interests and endorsements from companies including adidas and online mortgage broking firm Ziggybid.

However, one of his biggest deals is 49% ownership of food company Thorpedo Foods, which is 51% owned and managed by listed food company Freedom Nutritional.

The company was established through a joint venture announced in 2004, under which Thorpe became a shareholder in Freedom (then known as So Natural Foods). The shares were later sold when So Natural was acquired by interests associated with wealthy property entrepreneur Tony Perich.

Thorpedo Foods distributes its low GI beverage products through Japanese company Yakult Honsha. An investor presentation made in July last claims the Thorpedo range generates $US20 million in sale. Revenue flows back to Thorpedo Foods via a licensing arrangement.

But the Thorpedo business struggled badly in 2008-09, with total revenue tumbling from $1.8 million to $1.04 million, and profit before interest and tax sinking from $172,000 to just $64,000.

The company assets fell from $5.1 million to $3.8 million, although liabilities dropped from $7.5 million to $6.1 million.

The company, which was not available for comment prior to publication, provided little commentary on the Thorpedo business, which accounts for just 2% of overall revenue.

However, the business did have one small win last year, with Yakult Honsha, extending its license agreement for a further three year term. There are now four beverage products sold under the Thorpedo.