Sector News

Fonterra sells Aust business to Parmalat

December 16, 2015
Food & Drink

Fonterra said it would sell its Australian yoghurt and dairy dessert business to Parmalat Australia.

Both parties entered into exclusive negotiations which have now culminated in the signing of a sale agreement. Fonterra did not disclose the sale price.

The transaction, which is conditional on regulatory and other approvals, is expected to be completed in the first half the of the 2016 calendar year.

The divestment of its Australian yoghurt and dairy desserts business, which includes manufacturing sites at Tamar Valley and Echuca as well as its Australian yoghurt and dairy dessert brands, is part of a comprehensive plan to return the Co-operative’s Australian business to strong and sustainable profitability, Fonterra said.

Fonterra has in recent months been making changes to its Australian operations, which have struggled to perform.

In recent months, it has:

  • Decided to invest $120 million investment to rebuild its factory in Stanhope, in northern Victoria, as a state-of-the-art primary cheese manufacturing plant, with 50 per cent extra capacity.
  • Divested its 9 per cent stake in Bega, with the funds being re-invested into the Stanhope cheese plant.
  • Announced plans with Bellamy’s Australia Ltd and China’s Beingmate Baby and Child Food Company Ltd that provide opportunity for significant growth in nutritional volume from Fonterra Australia.
  • Commissioned a multi-million dollar beverages plant at its Cobden facility, in western Victoria, to service a 10 year partnership with Woolworths.
  • Launched Fonterra’s largest global brand, Anchor, in Australia.

Source: NZ Herald

Related News

June 13, 2021

Personalization, plant-based protein and COVID-19: Clinical nutrition experts discuss challenges driving innovation

Food & Drink

NutritionInsight speaks with experts from Kerry, FrieslandCampina Ingredients and Lactalis Ingredients about how this segment has developed over the past year and what innovations will shape the future.

June 13, 2021

Reckitt Benckiser to sell China infant formula business for $2.2bn

Food & Drink

Reckitt Benckiser Group has signed an agreement to offload its Infant Formula and Child Nutrition (IFCN) business in China to private equity firm Primavera Capital Group for $2.2 billion.

June 13, 2021

General Mills to make job cuts amid company restructuring

Food & Drink

A report from the Minneapolis-based online newspaper states that General Mills told employees that layoff plans include 700 to 800 jobs in the US and Canada, as well as 500 to 600 international positions.

Send this to a friend