Fonterra has given a new corporate identity to its consumer-facing business ahead of a potential public listing or divestment, plans first announced in May.
The business, which includes brands such as Anchor butter and Mammoth flavoured milk drinks, has been named Mainland Group. The New Zealand-headquartered cooperative has also appointed René Dedoncker as CEO-elect of Mainland.
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And Paul Victor as been selected as CFO.
In an update to the May announcement, Fonterra said in November it was pursuing an IPO or sale to a trade buyer as potential options for its consumer and associated business, which includes the Fonterra Oceania and Sri Lanka operations.
Post initiating one of those options, the co-op plans to focus on its ingredients business for the dairy industry.
“The Mainland brand has strong New Zealand dairy heritage and is also well known by consumers in New Zealand, Australia and across many of our global markets,” CEO Miles Hurrell said in a statement today (19 February).
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By GlobalData“Our intention is to thoroughly test the terms and value of both a trade sale and IPO before selecting an option to put to farmer shareholders for a vote.”
Hurrell added: “As part of the trade sale process, over the coming weeks Fonterra will be engaging with potential buyers of the consumer and associated business.”
CEO-elect Dedoncker is currently managing director of global markets for consumer and foodservice at Fonterra and has been with the company since 2005, serving in various leadership roles.
Victor joined Fonterra from Australian company Incitec Pivot, where he was also serving as CFO.
Dedoncker and Victor will lead roadshow meetings with “potential investor groups” scheduled to begin in March, Fonterra said today.
Hurrell said the co-operative remains focused on its strategy and to grow further value for farmer shareholders and the New Zealand economy “through our innovative foodservice and ingredients businesses”.
“At the same time, we recognise the responsibility we have to find the right steward for iconic brands such as Anchor, Mainland and Western Star and an ownership structure that allows these businesses to continue to grow.”
In September, Fonterra announced plans to invest NZ$150m ($92.8m) to build a new ultra heat treated (UHT) cream plant in its home market.
