New Zealand dairy giant Fonterra is taking another significant step towards "divesting" out of the Australian dairy industry. The move to sell off brands is seen as a focusing on its core business of milk and cheese supply. Fonterra's main brands include Anchor, Fresh'n Fruity and Mainland and its Australian portfolio includes well-known brands Western Star, Perfect Italiano and Bega Cheese.
The cost of living crisis is also seen as having a part to play with price-driven customers choosing home brands in greater numbers. Fonterra has 1600 employees and eight manufacturing sites in Victoria and Tasmania, including its flagship Cobden plant where it produces star performer Western Star butter. Fonterra Oceania managing director René Dedoncker on Tuesday, May 21, 2024, after questions were posed, released a statement to to try and clarify the company's position.
He said mid-last week the Fonterra Co-operative in New Zealand announced it was exploring options to potentially divest all or some of its global consumer business, including the Fonterra business that operates in Australia. "The Australian business is performing well, and recently completed an integration with Fonterra's brands business in New Zealand, to form Fonterra Oceania," he said. "It is our belief that the Fonterra Oceania business will strengthen our presence in Australia, New Zealand and across Oceania.
"At this stage, the Fonterra Co-operative is exploring potential divestment options. "Any decision would .