SWITZERLAND: Nestlé and New Zealand's Fonterra to enter into dairy alliance for the Americas
The two partners plan to proceed with their study and implementation in progressive steps following the evaluation of business opportunities. The two companies expect considerable benefits from their alliance, especially in the following areas: combined sales progression in existing and new markets, optimization of capital expenditures through optimal use of each others' assets, cost efficiency through the use of their respective infrastructures, optimal use of resources, distribution and manufacturing strengths, purchasing synergies and optimal use of research and development as well as product development resources. Furthermore, the two partners expect a favorable development of the quantity, quality and costs of fresh milk through the development of state of the art dairy farming practices in the host countries. Both partners have a long history of association with farmers and expect to make an important contribution towards developing fresh milk production in Latin America and thus to progressively improve the total earnings of farmers.
Mr. Peter Brabeck-Letmathe, CEO of Nestlé S.A., said that Fonterra would bring to the alliance "universally recognized expertise in development of dairy farming, livestock and milk technologies and in large-scale milk procurement, processing and management as well as strong market positions in a number of countries throughout the Americas."
Mr. Craig Norgate, CEO of Fonterra, stated that Nestlé, a major customer of long-standing of New Zealand dairy ingredients, "not only had its own extensive dairy infrastructure in the Americas for over 80 years but possesses established and trusted dairy brands and product development expertise from its worldwide research and development capability." Mr. Norgate said that the alliance would involve the part of the world that will deliver the strongest growth in demand for dairy products over the next five years and with a partner "that is widely recognized as the industry leader for branded products. Our two companies will complement each other in what is without doubt New Zealand's biggest ever commercial deal. It will be a partnership of equals which would not have been possible without the restructuring of our industry and the creation of Fonterra," Mr. Norgate concluded.
Innovation is king - or is it? Fear of legislation or simple lack of imagination has depressed innovation in the food sector for a couple of years. Brand extensions and me-too copycats are not the sam...
Nestlé UK has announced that from June 2005 every box of Nestlé breakfast cereals will be made with whole grain....
Nestlé sales in the first quarter of 2005 were up and on target to reach the company's full year goals it said today (Monday)....
US biotech company Senomyx has announced that it has reached agreement for a three-year extension of the collaborative research phase under its initial discovery and development agreement with Swiss f...
Shareholders in Swiss based food company Nestlé S.A. have rejected proposed changes to the company's rules proposed by the Ethos group....
The Food and Drink Federation today (Friday) launched the Lifestyle and Dietary Trends Industry Group, bringing together key players in the increasingly important area of enhanced nutrition and so-cal...
One of New Zealand's biggest dairy farming operations, Synlait Investments Ltd, is to stop supplying Fonterra and become an independent exporter from 2007/2008, it said today (Thursday)....
Dairy giant Fonterra today (Wednesday) announced the appointment of Greater Wellington Regional Council CEO, Barry Harris, to replace long-serving dairy industry executive Barry O'Donnell, in the key ...
- Does Kraft Heinz want to swallow Unilever whole?
- US food next wave on display at Winter Fancy Food
- Focus: Nestle CEO plan to balance sales, earnings
- Comment: Meal kits in US - don't believe the hype
- Wessanen eyes growth in "resurgent" organic market
- Kraft Heinz pulls Unilever bid
- General Mills issues profit warning
- Kerry operating earnings strengthen on slow sales
- Kerry Group staff in Ireland suspend strike action
- Kerry's Scanlon to replace McCarthy as CEO