DairyWest is owned by leading Australian private equity investment firm Archer Capital. Fonterra Brands Australia New Zealand Managing Director, John Doumani, says the decision to divest the business reflects Fonterra’s overall strategic direction in Australia.
“Our West Australian Brownes dairy business is a profitable business, with strong brands, consumer loyalty and a track record for innovation,” he said.
“However, fundamentally Brownes is a regional business and it is not receiving the right level of focus within Fonterra given our decision to focus on national leadership in our priority categories of cheese, spreads, yogurts and dairy desserts in Australia. Subsequently, the Brownes business will be better served as a stand-alone entity.
“Fonterra remains fully committed to Western Australia through our Mainland, Bega, Perfect Italiano, Western Star, Nestlé Ski and Nestlé Diet brands, which we will continue to develop and grow, to ensure they meet the needs of West Australian dairy consumers.”
All Brownes employees and existing farmer arrangements in the state, including farmgate pricing, will transfer to DairyWest.
Source: Fonterra Co-operative Group
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