EC clears Nestlé/Fonterra venture

INTERNATIONAL – The joint venture between Nestle and New Zealand dairy cooperative Fonterra to distribute product in North and South America has been cleared by the European Commission.

The companies signed an agreement to set up a new company, Dairy Partners Americas, in March last year. The operation will distribute dairy products to countries of the North American Free Trade Agreement, Central America and the Caribbean region.

Distribution will include dairy products such as milk foods and beverages, but will not include cheese, butter or infant formula.

The venture will be managed by senior executives from both founding partners, reporting to a joint supervisory board of six members.