Fonterra’s chief operating officer NZMP, Kelvin Wickham, says the partnership with foodspring has been an exciting early activity for Fonterra’s new Sports and Active Lifestyle business unit.
“From day one both foodspring and ourselves could see how our two companies would complement each other to make the most of the fast-growing sports and active market.
“foodspring had established a strong on-line sales channel and a digital nutrition and wellbeing coach, and we’re the protein innovators with a range of high value, advanced ingredients.”
Wickham said both companies could see the growth opportunities within the targeted nutrition market.
“And that’s exactly what’s happened. Over the past 18 months foodspring has become the fastest growing targeted nutrition brand in Europe.
“At the same time, the partnership gave us immediate and direct access to the fast-growing consumer Sports and Active Lifestyle segment. This is not just about professional athletes or bodybuilders anymore. Today it’s about everyday people taking more interest in their health and wellbeing, living longer and leading more active and healthier lives.”
Wickham said the market continues to be attractive for Fonterra’s dairy protein and dairy speciality ingredients.
“We are excited about continuing our relationship with foodspring and its new owners Mars, who will remain a valued customer of our NZMP ingredients business,” Wickham added.
NZMP director sports and active nutrition, Komal Mistry, said people across the world recognize protein as an important ingredient to support their health, with milk among the holy grail of protein sources.
“We’ve got a strong 60-year track record when it comes to protein and have a remarkable Research and Development team who are always finding new ways to innovate,” Mistry said.
The transaction is subject to regulatory approvals from competition authorities.
The gain on sale is subject to customary purchase price adjustments, exchange rate movements and final audit. It is not yet clear when the transaction will close and whether it will have an impact on FY19 earnings.