Gay Lea Foods Sells Thornloe Cheese to Triple “A” Cheese

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Ontario’s largest dairy co-op has reached a tentative agreement to sell Thornloe Cheese in Thornloe, Ontario to Triple “A” Cheese.

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Gay Lea Foods announced today that it has entered into a letter of intent to sell Thornloe Cheese, located 23 kilometres north of Temiskaming Shores, to the Mississauga-based company.

A letter of intent is a non-binding, interim agreement that provides Triple “A” Cheese with the opportunity to obtain financing to build a new cheese manufacturing facility near its current location.

The proposed terms of sale would see Triple ‘A’ Cheese acquire all of Thornloe Cheese’s assets, including the factory, brand, cheese recipes and factory supply quota.

Although this is a private sale and financial terms will not be disclosed, the organizations have agreed to a significantly favorable sale price for the buyer, as well as deferred payment terms.

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“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 facility requires significant investment and is no longer financially viable. We believe a different concept and new facility are needed for the brand to thrive in Northern Ontario. We hope that the significant effort invested in this project by both organizations will help achieve this goal.”

The new Thornloe Cheese concept is expected to include a larger cheese manufacturing plant, with greater milk receiving capacity on a more suitable local property, served by municipal water supply and wastewater treatment.

Triple “A” Cheese envisions a tourist and local destination in a new location near the current factory, with a fresh food store, cafe or catering restaurant, party rooms and a vibrant patio and outdoor space.

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Triple “A” Cheese is exploring several possible locations in Timiskaming Shores and New Liskeard, but the final location of the new Thornloe Cheese plant has not yet been determined.

The current Thornloe Cheese location would be redeveloped into a cold storage facility.

Triple “A” Cheese expects its new operations to eventually employ more than 100 people, double the previous workforce at Thornloe Cheese, while providing a permanent facility to process milk from local dairy farmers.

“All of us at Triple “A” Cheese are excited to transform this beloved local brand into a destination that serves the community and attracts tourism to Northern Ontario,” said Stefano Camaiani, President and CEO of Triple “A” Cheese.

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“It must be stressed, however, that this is an ambitious project and there are no shortcuts. A new facility is needed and it requires significant funding. There is still a lot to do.”

A top priority is securing the financing needed to purchase the land and build the new facility. Gay Lea Foods is supporting Triple “A” Cheese in discussions with financiers, including government agencies, to determine their interest in investing in this new concept.

“It’s a collaborative sales process, with both parties working toward a common goal,” Dalrymple said.

“We are pleased to support Triple “A” Cheese in their efforts to bring this exciting new venture to fruition and look forward to a positive outcome for the local Gay Lea Foods members and the community.”

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If the financing efforts are successful, the companies expect the sale to close in 2025 and the new plant to open in 2027 or 2028.

Triple “A” Cheese will also explore the possibility of re-establishing limited interim cheese manufacturing at the existing Thornloe facility, using equipment repurposed from its operations.

All aspects of the sale are contingent on Triple “A” Cheese securing financing to build a new dairy plant near Thornloe Cheese’s current location.

Gay Lea Foods will continue to skim grass-fed milk at Thornloe Cheese until October 2024, as it has done since the plant ceased cheese production in October 2023. This premium milk is currently used to make grass-fed butter, with skim used as part of the conventional milk supply.

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In October, Gay Lea Foods will stop receiving grass-fed milk from Thornloe Cheese, but will continue to pay farmers the grass-fed premium until March 31, 2025.

Gay Lea Foods and Triple “A” Cheese will keep the community updated 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.

Gay Lea Foods is an award-winning Canadian dairy and food co-operative.

The 65-year-old company counts 1,300 dairy farms in Ontario and Manitoba among its members.

Triple “A” Cheese Company of Mississauga began over 25 years ago as a small family business. Today, it remains a family-owned and operated company and is one of Canada’s largest manufacturers of feta cheese and other dairy products. It supplies private labels, wholesalers, food service suppliers, and retail and distribution chains throughout North America.

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