Dairy giant Fonterra is making a strategic shift by looking to sell its global consumer business, including well-known brands such as Anchor, Mainland, and Kāpiti. The move comes as the cooperative aims to focus on becoming a global business-to-business provider of dairy nutrition products.
Fonterra’s consumer business currently accounts for about 15 percent of the co-op’s total milk solids and represents approximately 19 percent of its underlying profit. Chief executive Miles Hurrell believes that by transitioning to a B2B dairy nutrition provider, the company can increase its value to farmers and grow further.
The divestment of the consumer businesses could also include integrated businesses like Fonterra Oceania and Fonterra Sri Lanka. The sale may involve 17 co-op-owned manufacturing sites worldwide, including three in New Zealand.
The process of selling the business units is expected to take 12 to 18 months and will require shareholder support. Fonterra has already received unsolicited interest in the consumer parts of the business, indicating potential market demand for these brands.
As part of this strategic shift, global markets chief executive Judith Swales will be leaving the company. Fonterra’s focus on becoming a B2B provider of dairy nutrition products highlights its commitment to innovation, sustainability, and building strong relationships with customers and farmers.