Fonterra Australia and Bellamy’s Australia Limited (Bellamy’s) will enter into a five year, multi-million dollar strategic agreement to manufacture a range of new baby nutritional powders.
“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,” says Fonterra MD Oceania Judith Swales.
Bellamy’s an infant formula company with expertise in the organic ingredient supply chain.
In 2014-15, the company achieved revenue growth of 156% from the year prior, which formula comprises 88% of its sales.
“We are also nearing the finalization of the Darnum joint venture with Beingmate Baby and Child Food Company Ltd following the recent formal approval by Beingmate’s Board and shareholders,” said Swales.
She added that the Co-operative had a clear plan to return its Australian business to strong and sustainable profitability.
Fonterra and Bellamy’s will work to finalize the proposed arrangements by the end of the year, with the agreement commencing in 2016.
