Thursday, 07 April 2022 06:55

Fonterra's Dreamery run in India over

Written by  Staff Reporters
Fonterra has ended its joint venture in India which saw the launch of Dreamery branded consumer products. Fonterra has ended its joint venture in India which saw the launch of Dreamery branded consumer products.

Fonterra has pulled the plug on its joint venture in India.

Fonterra Future Dairy was launched in 2018 as a 50:50 joint venture between the co-operative and Future Consumer Ltd.

It launched a range of consumer products made from Indian milk and distributed Anchor Food Professionals products for the foodservice sector.

Fonterra chief executive for the Asia Pacific region Judith Swales says the last few years have been challenging for the joint venture with Covid disrupting to the Indian market.

Swales says despite this the joint venture has delivered some important initiatives, including the launch of the Dreamery brand. She says the brand received positive feedback from consumers.

Future Consumer is the fast moving consumer goods (FMCG) arm of the Future Group. According to media reports out of India, the debt-laden company was told by regulators to sell 200 of its 1,700 retail outlets.

Fonterra's exit from the joint venture is unlikely to impact its balance sheet. "The co-op entered the joint venture as a capital-light way to test the Indian market, which has a large dairy consuming population but restrictive trade access for New Zealand dairy," says Swales.

"We will continue to have a presence in India through Anchor Food Professionals and our Ingredients business, and will explore opportunities to grow access for our New Zealand milk as they come up."

The 22 people employed by the joint venture will receive appropriate entitlements, says Swales.

More like this

A great outcome - Hurrell

Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.

Featured

Hort industry dishes out awards

Research and healthcare initiatives, leadership and dedication to the sector have been recognised in the 2025 Horticulture Industry Awards.

Manuka honey trader posts sour results

Manuka honey trader Comvita slumped to a $104 million net loss last financial year, reflecting prolonged market disruption, oversupply and pricing volatility.

Poultry industry, Govt sign landmark biosecurity deal

The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).

National

Machinery & Products

» Latest Print Issues Online

Milking It

Dreams aren't plans

OPINION: Milking It reckons if you're National, looking at recent polls, the dream scenario is that the elusive economic recovery…

Fatberg

OPINION: Sydney has a $12 million milk disposal problem.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter