Fonterra Australia is officially full steam ahead on its expansion plans as the cheesemaker continues to build out its footprint. Most recently, the company finalized an agreement to purchase Dairy Country for AU$19.23 million (14.11 million USD), helping drive efficiencies in its leading cheese business. The acquisition will support Fonterra’s core strengths in the AU$2.6 billion (1.91 billion USD) Australian retail cheese category, where it holds a 23 percent market share with key brands including Perfect Italiano™, Mainland™, and Bega™.
“This acquisition is a logical choice and further supports our strategy to be customer and consumer led, while ensuring we keep pace with the fast-growing cheese category in Australia,” said Managing Director René Dedoncker. “Dairy Country has two well-equipped secondary processing sites with capability across grating, shredding, and block, as well as an experienced workforce.”
According to a press release, Fonterra has a long, successful history with Dairy Country. The acquisition from food and beverage company Retail Food Group includes Dairy Country’s processing and packing facilities at Campbellfield and Tullamarine in Victoria, along with related services, intellectual property, and the trademark for the Dairy Country brand.
“For some time, we have been looking to bring more of our secondary cheese processing in-house to gain greater end-to-end control over a range of different cheese products and further strengthen our integrated supply chain. Having this kind of capability in-house will enable efficiencies and allow us to make the most of opportunities for value creation and product innovation,” said Dedoncker.
The majority of Dairy Country’s permanent employees will transfer over to Fonterra and will continue to work at the Campbellfield and Tullamarine facilities.
Keep an eye out for more of the industry’s most exciting acquisitions as we at Deli Market News continue to report.