SUBSCRIBE

Breaking News on Dairy Processing & Markets

News > Manufacturers

Read more breaking news

 

 

Parmalat completes purchase of Fonterra yogurt and dairy business in Australia

By Jim Cornall+

22-Feb-2016
Last updated on 22-Feb-2016 at 13:48 GMT2016-02-22T13:48:02Z

Parmalat has completed the purchase of Fonterra's yogurt and dairy dessert companies in Australia, including the Tamar Valley plant.
Parmalat has completed the purchase of Fonterra's yogurt and dairy dessert companies in Australia, including the Tamar Valley plant.

Italian dairy company Parmalat has announced it has completed the acquisition of Fonterra’s yogurt and dairy dessert business.

The acquisition from Fonterra Brands (Australia) Pty Ltd of its yogurt and dairy dessert business in Australia, includes the brands Tamar Valley, Soleil, CalciYum and Connoisseur (the last two through licence agreements) and the production facilities in Echuca, Victoria, and Tamar Valley, Tasmania, has now been completed.

Parmalat said that agreements with Nestlé were also signed whereby Parmalat acquired, within the Australian territory, the Ski brand previously licensed by Fonterra, and was granted the license for certain confectionery brands.

The consideration paid to Nestlé for the licensing is approximately $17.7m (€16m).

Deal made in December

In December, Fonterra announced its intention to sell its Australian yogurt and dairy dessert business to Parmalat Australia Pty. Ltd.

At the time, Fonterra said that the divestment was part of a plan to return the co-operative’s Australian business to sustainable profitability.

Fonterra managing director Oceania Judith Swales said Fonterra is still committed to the Australian dairy industry and its retail business, and the divestment is intended to achieve a competitive position in the Australian consumer market.  

“We will continue investing in programs and innovation that supports our market-leading brands in key retail categories, including Western Star butter and Perfect Italiano, Mainland and Bega cheeses, Anchor cream, and fresh milk,” Swales said.  

“Divesting the yoghurt and dairy desserts business will allow us to focus on what we do best, so we can continue delivering a competitive milk price to our suppliers, benefits to our customers, innovative dairy foods to our consumers, and improved returns to our farmer shareholders and unit holders.”  

All Fonterra’s Echuca and Tamar Valley employees in the yogurt and dairy dessert sectors received offers of employment from Parmalat.   

Key Industry Events

 

Access all events listing

Our events, Shows & Conferences...