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Major international dairy companies, including Meiji, Lactalis and Saputo, are reportedly considering bids for Fonterra’s global consumer businesses, according to Reuters, citing two sources familiar with the matter.

The New Zealand-based dairy co-operative is exploring the sale of several of its consumer-facing operations, which include brands such as Anchor butter, Mainland cheese, Kapiti ice cream and Anlene powdered milk. Also on the table are Fonterra’s Oceania and Sri Lanka business units, which span the entire value chain from milk collection through to product supply for retail and foodservice channels.

The divestment could raise around NZ 4 billion (approx. $2.37 billion), the sources told Reuters. US private equity firm Warburg Pincus is also said to be in the mix, according to a third source aware of the firm's interest.

Fonterra first announced in November 2024 a step-change in its strategic direction, as the co-op plans to strengthen its commitments to developing high-value dairy ingredients. The company aims to finalise a sale by mid-2025 but is still considering the IPO route, the sources said.

If the IPO route is chosen, the spin-off company would be named Mainland Group. Fonterra has already appointed key executives in preparation for the potential listing and intends to consult its farmer shareholders before making a final decision.

Warburg Pincus declined to comment. FoodBev has also contacted Fonterra, Meiji, Lactalis, Saputo for further comment.