Thursday, 06 December 2018 09:27

Tip Top on the chopping block

Written by Rural News Group

font size decrease font size increase font size
Print
Email

Taking Tip Top onto its next phase successfully will require a level of investment beyond what Fonterra are willing to make.

Fonterra has confirmed it is considering selling the nation’s beloved ice cream brand, Tip Top.

Fonterra this morning released information on its portfolio review, revealing as predicted that Tip Top could go up for sale.

Commenting on the board-led review, chairman John Monaghan says there is a lot of action and progress but it will take time to flow through into financial results.

He says that while Tip Top is performing well, it is the co-op’s only ice cream business and it has reached full maturity as an investment. Monaghan says to take it to its next phase successfully will require a level of investment beyond what they are willing to make.

Fonterra has appointed FNZC as an external advisor to work with the co-op as it considers “a range of options”.

“We want to see Tip Top remain a New Zealand based business and this is being factored into our options,” says Monaghan.

“We are still some months off from completing the full portfolio review of assets, investments and partnerships. We are moving quickly to meet our commitment to reducing our debt levels by $800 million by the end of the financial year. This requires both improved performance from last year and the divestment of assets.”

Featured

Call for action ahead of International Women's Day

This International Women's Day, there are calls to address a reported gender disparity gap between men women New Zealand's horticulture industry leadership.

Accident triggers traffic alert in barns, sheds

WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.

Plantain 'still a winner' in nitrogen loss battle

Now is not the time to stop incorporating plantain into dairy pasture systems to reduce nitrogen (N) loss, says Agricom Australasia brand manager Mark Brown.

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

Precision N application test costs 'outweigh returns'

Precision application of nitrogen can improve yields, but the costs of testing currently outweigh improved returns, according to new research from Plant and Food Research, MPI and Ravensdown.