Food and Beverage Business

Fonterra to consolidate New Zealand and Australia operations through merger

Fonterra to consolidate New Zealand and Australia operations through merger Fonterra Food and Beverage Business

Fonterra, the world’s largest dairy exporter, is merging its New Zealand and Australia business units in a move expected to boost its trans-Tasman offering in an increasingly competitive marketplace. The integration, becoming effective on 1 May, will see Fonterra Brands New Zealand (FBNZ) and Fonterra Australia combine to become Fonterra Oceania.

FBNZ, with iconic dairy brands such as Mainland, Anchor, and Kāpiti, produces milk, butter, specialty cheese, and yogurt for consumer and foodservice channels in New Zealand. All three brands will continue to source their milk from local farmers. Fonterra Australia’s portfolio includes Mainland, Western Star and Perfect Italiano, and expects the Australian milk pool to provide milk solids for all of its Australian products.

Renowned for quality, the company has appointed René Dedoncker, current managing director of Fonterra Australia, to head the new Fonterra Oceania unit. He has been with Fonterra since 2005, and this new role sees him continue to lead the combined business.

This development comes as Fonterra seeks new strategies to drive growth, with plans to achieve a 30% intensity reduction in farm-based emissions from its 2018 baseline by 2030. “This is part of a new on-farm emissions target and climate roadmap announced by the company in November,” as per a report from Just Food.

Moreover, the company has announced a 12% drop in revenue compared to the previous year, booking NZ$5.1bn ($3.1bn) in the first three months of full-year 2024. However, its gross profit increased by 19.7%, and EBIT was up 45.6% compared to the same period in 2022. Sales volumes, on the other hand, dropped 9.3% compared to the previous year.

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