Bellamy's and Fonterra join forces in baby formula

Bellamy’s will enter into a five year, multimillion-dollar strategic agreement with dairy producer Fonterra to manufacture a range of baby formula products.

Fonterra Managing Director Oceania Judith Swales said the agreement reflected the company’s strategy for Australia, to focus on winnable areas within the highly competitive market.

“We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity,” she said.

“Our Australian business has particular ingredients strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses, and today’s announcement with Bellamy’s Australia — one of the fastest growing infant formula companies — reaffirms our strength in nutritionals.”

Bellamy’s has strong brand recognition and expertise in the organic ingredient supply chain. Revenues have been increasing over recent years, culminating in revenue growth of 156% in 2014–15. Formula comprises 88% of Bellamy’s sales.

Swales said the proposed strategic agreement will help support the growth of Bellamy’s Organic in Australia and abroad. The popularity of the product, particularly in China, has led to complaints from Australian consumers of supply shortages.