June 25, 2008
Nestle Sells Yoghurt and Dairy Dessert Business to Fonterra
Nestle Australia has sold its yoghurt and dairy dessert business, including its Echuca factory, to Fonterra. The agreement is effective from September 1, 2008.
Under the agreement, Fonterra will also acquire the long-term rights to manufacture, market and sell Nestle's yoghurt and dairy dessert brands in Australia under license, alongside its own existing brands. The SKI brand, which is currently under license to Dairy Farmers, reverts to Nestle in 2012, and will then be licensed to Fonterra.
John Doumani, managing director of Fonterra Australia New Zealand, said: "We currently do not have a national presence in Australia's yoghurt and dairy dessert sector. By acquiring Nestle's yoghurt and dairy dessert business, it provides us with a national position and complements our existing portfolio where we hold leading national positions in cheese and spreads through our Mainland, Bega and Western Star brands."
Graham Campbell, managing director of Nestle Australia, said: "We believe that this new operation creates a soundly-based commercial entity that is well placed to be one of the leaders in the yoghurt and dairy dessert sector, and we are delighted that the vast majority of employees will be moving across to Fonterra."