Nestlé S.A., the world's largest food group, and New Zealand's Fonterra Co-operative Group Ltd, the world's most important exporter of dairy products (resulting from the merger of the major New Zealand milk cooperatives and the New Zealand Dairy Board and formerly known as Globalco), today announced that they are negotiating an alliance to create a number of joint ventures in the dairy business. These ventures will be restricted to North, Central and South America and are subject to due diligence as well as to regulatory and other clearances. They will cover a wide range of dairy products, including shelf stable as well as chilled refrigerated milk foods and beverages under their respective existing brands. Infant formula, evaporated and condensed milks, certain speciality products, cheese and butter are not covered by the alliance. The joint ventures will be managed by senior executives from both founding partners of the alliance and will report to a joint supervisory board.