Fonterra’s Tip Top ice cream business sold to Froneri for $380m
Froneri is the third largest ice cream manufacturer in the world, selling well-known ice cream brands in 20 countries.
Miles Hurrell, CEO, Fonterra said it was ‘time to hand the baton to new owners’ because the brand needs continuous investment and focused ownership which it was ‘not in a position to do right now’.
Tip Top employees will transfer to become part of Froneri over the coming months and continue to be led by the existing management team. The Tip Top name and its operations, including its Auckland, New Zealand, factory will remain the same.
Froneri was created in 2016 as a joint-venture between PAI Partners and Nestlé.
Ibrahim Najafi, CEO, Froneri, said its vision is ‘to build the world’s best ice cream company’; to develop local market successes and roll them out across other markets.
Hurrell added, since taking over Tip Top in 2001, a lot of work has gone into the brand.
“Tip Top has always listened to consumers and cared about their changing tastes, as well as their long-time favorites. An average of 340 serves of Tip Top are enjoyed every minute of every day,” he said.
Fresh milk & cream
“This came through in both the number and quality of bids we received. It’s a fantastic brand and as a result, we’ve secured a good price for our farmers and unit holders.
“One of the big attractions for Froneri is that Tip Top and Kāpiti ice cream both use fresh milk and cream, from New Zealand grass-fed cows. We’ve signed an agreement with the new owners to supply milk which ensures Fonterra farmers will continue to be part of the Tip Top story.
“We will also retain full global ownership of the Kāpiti brand and will be licencing its use for ice cream to Froneri.”
Throughout its 80-year history, Tip Top has been owned by several international brands.
Kim Ballinger, MD, Tip Top said as part of the Froneri family it will benefit from its scale and expertise, while continuing to maintain its commitment to its local heritage and loyal consumers in New Zealand and the wider Asia Pacific region.