Fonterra and Bellamy’s Australia have announced plans for a strategic agreement to manufacture a range of new baby nutritional powder.
Commenting on the announcement, Fonterra Managing Director Oceania Judith Swales said the five year multi-million dollar partnership with Bellamy’s was part of the ongoing transformation of the company’s Australian business.
“This is our strategy in action for Australia where we focus on the areas we can win in a highly competitive market to deliver the best returns,” Ms Swales said.
“We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.”
She said the company’s Australian arm was ready to utilise all available technological and nutritional resources to substantially increase its market share and achieve strong and sustainable profitability.
“Our Australian business has particular ingredients strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses; and today’s announcement with Bellamy’s Australia – one of the fastest growing infant formula companies – reaffirms our strength in nutritionals,” Ms Swales added.
“The Darnum plant is a leading nutritionals plant in Fonterra’s global network. Leveraging our Fonterra Research and Development Centre in Palmerston North, the largest dairy innovation Centre in the southern hemisphere, we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand.”
Bellamy’s has been experiencing continued growth over the past few years. In the financial year 2014-15, the company achieved exceptional revenue growth of 156 per cent from the year prior.
Ms Swales said the proposed strategic agreement will further stimulate Bellamy’s growth and enable the company to maximise its potential.
“The proposed multi-million dollar strategic agreement will help support the growth of Bellamy’s Organic in Australia and abroad, and builds on our strong current relationship,” Ms Swales said.
“We are also nearing the finalisation of the Darnum joint venture with Beingmate Baby and Child Food Company Ltd following the recent formal approval by Beingmate’s Board and shareholders.”
The proposed arrangements between the two companies are expected to be finalised by the end of the year, with the agreement commencing in 2016.
