Fonterra divests in Oz and India
The group says that it has agreed deals with Nestle and Bulla Dairy Foods to respectively acquire its Peters brand of ice creams and the licence for the Cadbury range of products in Australia.
The announcement follows on from the decision to terminate a joint venture agreement in India with Britannia Foods.
Mark Wilson, managing director of the group’s Asian and Middle East operations, said it had sold its stake in Britannia New Zealand Foods back to its partner in the country to concentrate on other core business areas.
“While we are seeing a lot of growth in India, the local milk supply is fragmented and requires significant development and investment in order to deliver an efficient supply chain for high quality fresh milk,” he stated.
“Investing in India’s consumer dairy market is not a core priority for Fonterra at this time.”