MISSISSAUGA, Ont. — Gay Lea Foods is providing an update on its sale of Thornloe Cheese, announcing it has entered into a letter of intent. Ontario’s largest dairy farming co-operative has reached a tentative agreement to sell Thornloe Cheese to Triple “A” Cheese, a Mississauga-based cheesemaker.
A letter of intent is a non-binding, tentative agreement, which provides Triple “A” Cheese the opportunity to secure financing to construct a new 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.
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, and deferred payment terms.
See related: Fight is on for future of Thornloe Cheese
In October 2023, Gay Lea Foods announced the immediate, permanent closure of Thornloe Cheese and its store located on Highway 11, north of Temiskaming Shores.
Known as the "Pride of the North," the Thornloe Cheese plant was taken over by Gay Lea in 2019. It is a Canadian farmer-owned co-operative with members on more than 1,400 dairy farms across Ontario and Manitoba. Thornloe Cheese has been a respected local cheese and cheese curds producer in northeastern Ontario for over 75 years. The business employed 35 people and was celebrated for its specialty cheeses and for introducing the first butter and cheeses made with milk sourced from the Dairy Farmers of Ontario Verified Grass Fed program.
See also: Over 200 come out to support Thornloe Cheese
“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. “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.”
A new concept for Thornloe Cheese
The new concept for Thornloe Cheese is likely to 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.
- Re-purposing the existing Thornloe Cheese location as a cold storage facility.
Triple “A” Cheese envisions its new operations would 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.”
Financing requirements and timing
A key priority is to secure financing to purchase land and build the new facility. Gay Lea Foods is supporting Triple “A” Cheese in discussions with financers, including government agencies, to determine their interest in investing in this new concept.
“This has been a collaborative sale process, with both parties working toward a common objective,” said Dalrymple. “We are pleased to support Triple “A” Cheese in its efforts to bring this exciting new venture to fruition and are hopeful of a positive outcome for local Gay Lea Foods members and the community.”
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.
All aspects of the sale are contingent upon Triple “A” Cheese securing funding to build a new dairy plant near the current Thornloe Cheese location.
Grassfed milk
Gay Lea Foods will continue skimming grassfed milk at Thornloe Cheese until October, as it has done since the plant stopped making cheese in October 2023. This premium milk is currently being used to make grassfed butter, with the skim used as part of the conventional milk supply. In October, Gay Lea Foods will stop receiving grassfed milk at Thornloe Cheese but will continue paying farmers the grassfed premium until March 31, 2025.
Gay Lea Foods and Triple “A” Cheese will update the community as more is known about the sale of Thornloe Cheese but encourage patience, as funding such an ambitious project takes time, and the outcome is inherently uncertain.
