Sector News

Fonterra to unwind Australian joint venture with Beingmate

December 5, 2018
Food & Drink

Fonterra has reached an agreement with Chinese infant formula firm Beingmate to unwind their joint venture in Darnum, Australia.

A spokesperson from the New Zealand dairy company said both firms have reached a provisional agreement with regards to the joint venture.

Fonterra acquired an 18% stake in Beingmate in 2014 and as part of the investment, the companies bought the Darnum plant, located in the state of Victoria.

A Fonterra spokesperson said: “At our 2018 annual results presentation, we signalled that we’re undertaking a strategic review of our investments to ensure they’re fit for purpose.

“We’ve been open about the fact we’re looking at all aspects of our investment in Beingmate as part of that broader strategic review. This includes our Darnum joint venture.”

Fonterra is expected to release further details of its plans for Darnum in its first-quarter results, which will be published later this week.

In its most recent financial results, Fonterra recorded its first annual loss since its inception in 2001. The poor figures were, in part, affected by a NZD 439 million ($287.7 million) writedown on its investment in Beingmate.

In July, Beingmate appointed Bao Xiufei as its new general manager in a move to re-focus its business for growth.

Fonterra said the appointment signals an important step in the transformation of Beingmate.

Source: FoodBev

comments closed

Related News

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.