Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra And Nestlé Realign Latin American Venture

Fonterra And Nestlé Realign Decade Long Latin American Joint Venture

Fonterra and Nestlé have realigned their 10-year old Dairy Partners Americas (DPA) 50/50 joint venture and signed binding agreements covering the revised scope of the alliance.

Under the agreements:

• Fonterra will take a 51 per cent controlling stake in DPA Brazil, with Nestlé holding the balance;
• Fonterra together with a local partner will acquire Nestlé’s share of DPA Venezuela;
• Fonterra will sell its share in DPA’s milk powder manufacturing business to Nestlé;
• Nestlé will buy Fonterra’s share in DPA Ecuador.

Fonterra’s CEO, Theo Spierings, says the DPA joint venture has performed well for ten years and now the time is right to realign the partnership to better reflect the respective strategies of Nestlé and Fonterra in the region.

He says the revised alliance supports Fonterra’s group strategic focus on everyday nutrition in key growth markets such as Latin America, China and Indonesia.

“We value our relationship with Nestlé and this high-quality agreement will see our successful alliance continue.
“The deal also enables the Co-operative to drive more long-term value in the region for its farmer shareholders,” he says.

Fonterra’s Managing Director of Latin America, Alex Turnbull, says: “The region’s economies have undergone considerable change during the past 10 years. We’ve seen increased prosperity in markets like Brazil with rapidurban growth and a focus on healthy nutrition driving demand for dairy products.

“A bigger stake in DPA Brazil means we will be well placed to drive our volume and value growth strategy focusing on everyday nutrition offerings.”

Fonterra’s Latin American footprint drives more than 900,000 metric tonnes of volume per year and $3.5 billion (NZD) in revenue from consumer dairy, foodservice and dairy ingredients.

“We are very proud with what we’ve achieved through the DPA joint venture with Nestlé and are looking forward to continuing to work together with renewed focus,” says Mr Turnbull.

The changes to the joint venture are subject to regulatory approval. As a consequence of the realignment,Fonterra expects to receive about $96 million (NZD) in the next financial year.

About Dairy Partners Americas

Set up in 2003, Dairy Partners Americas is the largest dairy company in South America, purchasing and processing more than two billion litres of milk each year in Brazil alone. DPA produces ingredients and consumer products with strong brands in the liquid and chilled dairy market throughout Latin America.

Fonterra licenses brands and provides its large-scale milk procurement, product development, and manufacturing and processing expertise, as well as technical services and certain technology to the alliance.

Nestlé licenses brands and provides its product development, manufacturing and processing expertise, as well as distribution infrastructure to the alliance.

- ENDS -

© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news