Analysts: Sale of Fonterra's Consumer Division May Change Dynamics of Dairy Sector Development in Regions
Source: The DairyNews
Leading dairy market analysts commented to The Dairynews.today on plans by New Zealand's largest cooperative, Fonterra, to sell its consumer goods division.
"We believe we can further enhance the cooperative's value by focusing on becoming a B2B dairy product supplier, closely working with clients through our high-quality ingredients and foodservice channels. In this context, we are considering the sale of our global consumer business, as well as our integrated companies Fonterra Oceania and Fonterra Sri Lanka," commented Fonterra CEO Miles Harrell.
Fonterra's consumer business includes a portfolio of leading global brands such as Anchor, Mainland, Kāpiti, Anlene, Anmum, Fernleaf, Western Star, Perfect Italiano, and others.
Prashant Tripathi, Founder & Director of Market Development at the consulting company JORDBRUKARE, told Dairynews.today: “I think this will come to reality; it will change the region's dynamics, which Fonterra will call an exit. For example, the Sri Lankan exit could mean a potential consolidation in the sector and a better opportunity for its competition and any new entrant.”
Torsten Hemme, global dairy expert and founder of the analytical network IFCN, noted: “it looks that in the future bigger is not the top priority of some processors anymore.”
We previously reported that Bega Group and Perich Group are being considered as candidates to purchase Fonterra's B2C dairy business.
Fonterra's consumer business includes a portfolio of leading global brands such as Anchor, Mainland, Kāpiti, Anlene, Anmum, Fernleaf, Western Star, Perfect Italiano, and others.
Prashant Tripathi, Founder & Director of Market Development at the consulting company JORDBRUKARE, told Dairynews.today: “I think this will come to reality; it will change the region's dynamics, which Fonterra will call an exit. For example, the Sri Lankan exit could mean a potential consolidation in the sector and a better opportunity for its competition and any new entrant.”
Torsten Hemme, global dairy expert and founder of the analytical network IFCN, noted: “it looks that in the future bigger is not the top priority of some processors anymore.”
We previously reported that Bega Group and Perich Group are being considered as candidates to purchase Fonterra's B2C dairy business.
