Fonterra Considers Sale and IPO as it Announces New Corporate Brand

Fonterra, a global dairy giant, is evaluating both a sale and an Initial Public Offering (IPO) as potential avenues for divestment, alongside announcing a new corporate brand. According to CEO Miles Hurrell, the cooperative's decision to pursue these options is rooted in maximizing value for farmers and allowing room for growth within its foodservice and ingredients sectors.

"At the same time, we recognize the responsibility we have to find the right steward for iconic brands such as Anchor, Mainland, and Western Star, and an ownership structure that allows these businesses to continue to grow,” Hurrell stated.

The announcement, made in November 2024, detailed that Fonterra is committed to thoroughly evaluating both trade sale and IPO before presenting an option to farmer shareholders for voting. Fonterra plans to engage potential buyers for its consumer and associated businesses in the coming weeks as part of the trade sale process.

Hurrell also revealed the corporate brand—Mainland Group—for a public entity should the IPO path be chosen. René Dedoncker, currently managing director of global markets consumer and foodservice at Fonterra, has been named CEO-elect. Paul Victor joins as CFO-elect, bringing over 30 years of financial experience.

Hurrell commented, "René is a seasoned leader who has successfully led Fonterra's Australian business and played a pivotal role in forming Fonterra Oceania." However, Hurrell added that Mainland's strong presence in key markets, including New Zealand and Australia, boosts the credibility of the IPO route.

Both leaders will spearhead investor roadshows beginning in March, firmly placing the Mainland Group in a decisive position for its future direction.