Fonterra and Bellamy join forces

Fonterra Australia and Bellamy’s Australia are to enter into a five year strategic agreement to manufacture a range of new baby nutritional powders together.

Judith Swales, managing director at Fonterra, says, “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.

“We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.

“Our Australian business has particular ingredients strengths in cheese, whey and nutritionals complemented by our strong consumer and foodservice businesses; and the announcement with Bellamy’s Australia – one of the fastest growing infant formula companies – reaffirms our strength in nutritionals.”

Bellamy’s has experienced continued growth over many years, and financial year 2014-15 has been exceptional achieving revenue growth of 156% from the year prior. Formula comprises 88% of Bellamy’s sales.

“The proposed multi-milion dollar strategic agreement will help support the growth of Bellamy’s Organic in Australia and abroad, and builds on our strong current relationship,” Swales notes. “We are also nearing the finalisation of the Darnum joint venture with Beingmate Baby and Child Food Company following the recent formal approval by Beingmate’s Board and shareholders.”

Fonterra and Bellamy’s will work to finalise the proposed arrangements by the end of the year, with the agreement commencing in 2016.

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