New Zealand dairy giant Fonterra is exploring full or partial divestment options for some or all of its global Consumer business, including its integrated business Fonterra Sri Lanka, according to a statement by Fonterra Co-operative Group Ltd.
The Fonterra Group announced on Thursday a step-change in its strategic direction, as it commits to deepening its position as a world-leading provider of high-value, innovative dairy ingredients.
Alongside Fonterra Sri Lanka, the Co-op is exploring full or partial divestment options for its global Consumer business, including its integrated business Fonterra Oceania. Fonterra Sri Lanka comprises Consumer and Foodservice businesses.
Fonterra’s global Consumer business has grown over the years since Fonterra was formed and is performing well. It includes a portfolio of market-leading brands such as Anchor, Mainland, Anlene, Anmum, Western Star, Perfect Italiano and others.
As a next step, Fonterra will appoint advisors to assist with assessing divestment options.
“A divestment of these assets would help create a simpler, higher performing Co-op with our focus on our core Ingredients and Foodservice business and doing what we do best.
“We recognise a divestment of this scale would be significant for Fonterra. Throughout this process, we will be considering how best to maximise overall returns to our farmer shareholders and unit holders,” says CEO Miles Hurrell. (Newswire)