"Our" business?
OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.
Fonterra has updated its plan to divest its global consumer business and integrated businesses, Fonterra Oceania and Fonterra Sri Lanka.
The co-op is looking at both a sale and an Initial Public Offering (IPO). A new corporate brand has also been announced as part of the process.
Miles Hurrell, chief executive of Fonterra, says the co-operative’s decision to pursue a divestment is grounded in an understanding of where it creates the most value for farmers and where there is further room to grow.
He says the co-operative is clear on its strategy and has a pathway to grow further value for both farmer shareholders and the New Zealand economy through its foodservice and ingredients businesses.
“At the same time, we recognise the responsibility we have to find the right steward for iconic brands such as Anchor, Mainland, and Western Star and an ownership structure that allows these businesses to continue to grow,” Hurrell says.
In November 2024, Fonterra announced that it would pursue both a trade sale and an Initial Public Offering (IPO) as potential methods for divestment.
“Our intention is to thoroughly test the terms and value of both a trade sale and IPO before selecting an option to put to farmer shareholders for a vote,” Hurrell says. “Ahead of that, we are today indicating the next steps that are required in both processes.”
As part of the trade sale process, Fonterra will be engaging with potential buyers of the consumer and associated businesses in the coming weeks.
At the same time, as part of the preparation for a potential IPO, Fonterra has named key management team members and chosen a corporate brand for the entity if it is to be publicly listed.
Hurrell says Mainland Group as the corporate brand for the group if it continues with the IPO.
“The Mainland brand has strong New Zealand dairy heritage and is also well known by consumers in New Zealand, Australia and across many of our global markets,” he says.
René Dedoncker has been named CEO-elect for the brand.
“René is currently Fonterra’s managing director global markets consumer and foodservice, leading the businesses in scope for divestment,” Hurrell says.
“He joined Fonterra in 2005 and has held several global leadership positions during that time. He has led our Australian business since 2017, including through its recent merger with Fonterra Brands New Zealand to form Fonterra Oceania,” he adds.
Paul Victor will serve as CFO-elect for Mainland Group.
“Paul has joined Fonterra from ASX-listed Incitec Pivot Limited, where he was Chief Financial Officer. Paul brings more than 30 years of experience, working across functions including finance, treasury, tax, financial planning and analysis, control, M&A, investor relations and IT,” Hurrell says.
“René and Paul are very capable leaders with the experience to take these businesses forward into their next phase. Both will lead roadshow meetings with potential investor groups, commencing in March.”
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
Beef + Lamb New Zealand has launched an AI-powered digital assistant to help farmers using the B+LNZ Knowledge Hub to create tailored answers and resources for their farming businesses.
A tiny organism from the arid mountains of mainland Greece is facilitating a new way of growing healthier animals on farms across New Zealand.
OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…
OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…