Unlicensed chip factory lands WA's 'spud king' in hot water

Tony Galati's group has paid a price for creating Spuddies chips in breach of the rules. (ABC Goldfields: Macey Turner)

Galati Group company ABV Food Processing has been fined $20,000 for building and operating an unlicensed potato chip factory in WA's South West.

The announcement of the facility's April 2024 "grand opening" tipped off authorities.

The Galati Group has since lodged an application, which is being assessed.

West Australian "Spud King" Tony Galati's group of businesses has been fined for illegally setting up a chip factory in the state's South West without official approval.

The Galati Group pleaded guilty to breaching the Environmental Protection Act in 2023 and 2024 by setting up a chip-making factory for Spuddies brand potato chips in Myalup, 140km south of Perth, without the required license.

The company also admitted to dumping non-oily chip-making waste on the site without a license.

In Bunbury Magistrates Court today, Magistrate Stephen Butcher sentenced ABV Food Processing, owned by the Galati Group, to a fine of $20,000.

Spuddies Chips were sold at Spudshed stores across the state. (ABC South West WA: Neve Brissenden)

"There had been multiple notifications sent to the company, it was a live issue, they were on notice of it," he said.

In April 2024, the Galati Group created a home brand of chips called Spuddies, which were distributed and sold at Spudshed stores across the state.

In sentencing submissions, the court heard an officer from WA's Department of Water and Environmental Regulation (DWER) had been notified of the factory's imminent grand opening for February 2024.

A day later, a DWER official emailed the Galati Group to advise "amongst other things that it would be an offence to commence any works", the court heard.

Galati Group opened the factory in 2024 without the required approvals. (ABC South West WA: Neve Brissenden)

Despite having no works approval from the department, the Galati Group installed the chip processing facility between November 2023 and April 2024, the court heard.

Between those dates, the company installed an industrial peeler, blancher, fryer, converter belt, and weight heads for a "precise partitioning and bagging system".

In June 2024, a DWER officer emailed Galati Group chief executive Frankie Galati, advising she would like to read the meters at the Myalup property.

Mr Galati responded the next day, advising that chip production at the facility had already begun.

The department responded, reminding the company that it needed a works approval and license, but received no response.