Fonterra to reduce stake in Chinese food manufacturer

Fonterra Brands Australia Pty Ltd

Thursday, 08 August, 2019

Fonterra to reduce stake in Chinese food manufacturer

Fonterra will sell a portion of its stake in Beingmate Baby & Child Food Company Ltd, which is currently 18.8%.

Chief Executive Miles Hurrell said this decision is part of Fonterra’s three-point plan to turn around the business, with the company re-evaluating every investment, major asset and partnership to ensure they still meet the company’s needs.

This involved a review of Fonterra’s relationship with Beingmate, and bringing the distribution of Anmum in China back in-house, under company management. Fonterra then ended the Darnum joint venture with Beingmate, brought back Beingmate’s share of the Darnum facility in Australia and entered into an agreement for Beingmate to purchase ingredients from Fonterra.

“What remains is our shareholding in Beingmate Baby & Child Food Co., which we now view as a financial investment only,” said Hurrell. As Fonterra has been unsuccessful in finding a buyer for its entire share of Beingmate, the company is now considering selling part of their holding.

“China will always be one of our most important markets. We’ve got a strong business there and are still very much focused on the areas in China where we can succeed,” Hurrell concluded.

Image credit: ©stock.adobe.com/au/Dragana Gordic

Related News

Haigh's CEO announces retirement

After 30 years at the helm, Alister Haigh will retire as CEO of Haigh's Chocolates in August,...

Meat & Livestock Australia releases its Strategic Plan 2030

After 12 months of consultation, MLA has released its Strategic Plan 2030, which details...

'Best of the best' Victorian wine awarded twice

A chardonnay from A. Rodda Wines scooped up both the Premier's prizes at this year's...


  • All content Copyright © 2025 Westwick-Farrow Pty Ltd