August 17, 2008

Recession Hits Dairy Brands

By JANES, Andrew

SHOPPERS switching to cheaper house-brand dairy products have led to Goodman Fielder writing down the value of its New Zealand dairy operations by about a quarter.

Goodman Fielder is No 2 in the New Zealand dairy market after Fonterra. Its brands include Meadow Fresh and Sun Latte milk, and Tararua and Chesdale cheese. In the year to June 2007, the New Zealand dairy operations had revenue of almost $500 million. Yesterday it said it would write down their value by $214 million.

The company said the recession had hit brand values, "which then affects the goodwill valuation of the business".

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