Goodman Fielder sells biscuit business at loss to Green's Foods Just baked: Green's Foods paid $17 million for the business. Photo: Ken Irwin Food group Goodman Fielder is selling its biscuits business at a loss of up to $55 million as part of its push to offload non-core assets. The trans-Tasman company said on Monday it had sold its biscuit division, which includes the brands Paradise, Cottage, Vive and Veri Deli, to Green's Foods for $17 million. Goodman Fielder chief executive Chris Delaney said the sale would result in the company posting a non-cash impairment of between $50 million and $55 million in its half-year accounts. But Mr Delaney was adamant the company would be better off in the long term. "It allows us to concentrate our internal resources and investment on our core brands within the grocery division where we have profitable, category leadership positions," he said. The biscuits business is not core to our grocery division, and we formed the view that this business can maximise its potential under different ownership. Goodman also produces bread, spreads, flour and dressings, with brands including Helgas, MeadowLea, White Wings and Praise. Revenue from Goodman's grocery division, which includes its biscuit business, dropped 7 per cent to $540.6 million in 2012-13. It has been under pressure in recent years, particularly as a savage price war between Coles and Woolworths continues to rage. Mr Delaney said when releasing the company's annual report in October that retail trading conditions "remained difficult." Subdued consumer sentiment and increased competition from proprietary brands and private label ... continued to put pressure on volumes and price. [But] despite lower revenue, gross margin as a percentage of sales improved on the previous year from a continued focus on cost discipline across the business. The sale of the biscuits business is part of Goodman's asset review, which began when Mr Delaney started his tenure two years ago. A Goodman spokesman said that when Project Renaissance began the company was "spread too thin," having more than 93 brands. But he said the strategy was making inroads and was on track to deliver $100 million in annualised cost savings by 2015, having already achieved $65 million in savings in the past two years. Assets it has already sold include the Integro fats and oils business, the New Zealand milling operations and dips maker Copperpot. The company is believed to be seeking buyers for its Pampas Pastry and NZ meats business. Goodman will also pursue opportunities to sell its products outside supermarkets, such as the food service market, hotels, restaurants and cafes. After the biscuit deal, expected to be completed by February, Green's will emerge as the biggest Australian-owned biscuit company. Goodman will retain its White Wings brand, which Green's will license for two years. Green's executive chairman Shane Noble said the acquisition would "secure the jobs of more than 300 employees" at Goodman's biscuit factory in Carole Park, Brisbane. "We are committed to delivering a strong local offer in the biscuit category, spanning branded and private-label products and we are excited by the opportunities to invest in growing this category," Mr Noble said.