Page 5 - Food&Drink Magazine October 2021

NEWS
Fonterra flags Aus sale
AS New Zealand dairy giant Fonterra Cooperative Group released its FY21 results, CEO Miles Hurrell also alerted the market the company was turning its focus from a business reset to a portfolio asset evaluation, including the sale of its Australian business.
Hurrell said that as the coop works to differentiate New Zealand milk on the world stage, it will sell Fonterra Australia, flagging a possible IPO, while retaining a significant stake in the business.
“Fonterra Australia is on strategy for the Co-op and remains an important export market for our New Zealand milk, especially for Foodservice products and advanced ingredients. We are considering the most appropriate ownership structure for this business, one option is an IPO, with the intention that we retain a significant stake,” Hurrell said.
The company is also looking to sell its business in Chile.
“We see both these moves as critical to enabling greater focus on our New Zealand milk and, importantly, allowing us to free up capital, much of which is intended to be returned to shareholders.”
Fonterra Australia’s FY21 normalised earnings before interest and tax was $71 million,
up 37 percent on FY20, with $1.8 billion in revenue. It has eight manufacturing sites and employs around 1300 people. In FY21 it collected just over 1.6 million litres of raw milk from Australian dairy farmers. It also manufacturers dairy brands including Bega Cheese, Western Star and Perfect Italiano.
Fonterra Australia managing director René Dedoncker told The Australian Financial Review that a float was the preferred option, but a trade sale or private equity partnership would also be considered. ✷
Snack Brands’ $222 million build
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MARS WRIGLEY’S BALLARAT INVESTMENT Mars Wrigley will spend $30 million expanding its chocolate manufacturing business in Ballarat.
THE proposed expansion of Snack Brands Australia’s Orchard Hills site in Western Sydney has been classified a State Significant Development Application due to the potential jobs and investment it will bring to the region.
The $222 million project will expand the current facility to a 22,225 square metre operation to include food manufacturing (3,500 square metres) as well as existing warehousing and distribution.
Snack Brands Australia produces CC’s, Thins chips, Kettle Chips and Crackers, The Natural Chip Co., Cheezels, French Fries, Jumpy’s, Samboy, Chickadees, and Griffin’s Marvels.
NSW Minister for Planning and Public Spaces Rob Stokes said: “Chips may be cheap, however this proposal is
anything but and represents a major opportunity for Western Sydney.
“The pandemic has shown that many of Sydney’s construction workers live in the south-west, so it’s important that we have as many jobs close to homes as possible.”
Local Member for Mulgoa Tanya Davies said the
proposal would see some of Australia’s most iconic chip brands manufactured in Western Sydney.
“If approved, the Snack Brands Australia site will be a 24/7 operation and feature a new food manufacturing facility, an office, a wastewater treatment plant and create 497 construction jobs,” Davies said. ✷
✷ SEE MORE ON P6 www.foodanddrinkbusiness.com.au | October 2021 | Food&Drink business | 5