Fonterra completes sale of Mainland Group to Lactalis

On 31 March 2026, Fonterra Co-operative Group Ltd announced that it has completed the sale of its global consumer and associated businesses, Mainland Group, to Lactalis.

Chairman Peter McBride said the completion of the sale is a significant milestone which sets the Co-op up for the future.

“With the divestment complete, Fonterra can return capital to its owners and focus on growing further through its core business as a New Zealand farmer-owned global B2B dairy provider,” McBride said.

CEO Miles Hurrell said, “Through our high-performing Ingredients and Foodservice businesses, we sell innovative dairy products to customers globally under our NZMP and Anchor Food Professionals brands.

“We can now focus our resources, R&D spend and farmers’ capital on continuing to grow these businesses, which generate the greatest return for farmers’ milk.

“The completion of the sale also signals the start of our long-term partnership with Lactalis. Lactalis becomes one of our most significant Ingredients customers, as we continue to supply milk and other products to the divested businesses.”

The sale comprises:

• Fonterra’s global Consumer business and Consumer brands, excluding the consumer business in Greater China where Fonterra will continue to own the Anchor brand;
• the integrated Foodservice and Ingredients business in Oceania;
• the integrated Foodservice business in Sri Lanka;
• the Middle East and Africa Foodservice business.

The product supply agreements between Fonterra and Lactalis are:

• Raw Milk Supply Agreement — Fonterra to supply raw milk to Lactalis for a minimum term of 10 years, with automatic renewal until terminated.
• Global Supply Agreement — Fonterra to supply ingredients and other products (eg, bulk cheese) to Lactalis for a minimum period of 6 years, with automatic renewal until terminated.

Image credit: iStock.com/Oknopo