Saturday, March 30, 2024

Round-up: Fonterra in new baby powder deal

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Fonterra Australia and Bellamy’s Australia are setting up a five-year, multi-million dollar strategic agreement to make a range of new baby nutritional powders.
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Fonterra’s Oceania managing director Judith Swales says today’s announcement is part of Fonterra’s transformation of its Australian business.

“This is our strategy in action for Australia where we focus on the areas we can win in a highly competitive market to deliver the best returns,” she said.

“We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.

The Darnum plant is owned in a joint venture with Chinese firm Beingmate and run by Fonterra.

“Our Australian business has particular ingredients strengths in cheese, whey and nutritionals complemented by our strong consumer and food service businesses.”

Bellamy’s is one of the fastest growing infant formula companies, Swales said.

“The Darnum plant is a leading nutritionals plant in Fonterra’s global network.

“Leveraging our Fonterra Research and Development Centre in Palmerston North, the largest dairy innovation centre in the southern hemisphere, we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand.

Bellamy’s has strong brand recognition and expertise in the organic ingredient supply chain, Swales said.

In financial year 2014-15 it achieved revenue growth of 156% on the previous year.

Formula comprises 88% of Bellamy’s sales.

“The proposed multi-million dollar strategic agreement will help support the growth of Bellamy’s Organic in Australia and abroad and builds on our strong current relationship.

“We are also nearing the finalisation of the Darnum joint venture with Beingmate Baby and Child Food Company following the recent formal approval by Beingmate’s board and shareholders,” she said.

Fonterra had a clear plan to return its Australian business to strong and sustainable profitability.

Fonterra and Bellamy’s will work to finalise the proposed arrangements by the end of the year, with the agreement starting in 2016.

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