The two international dairy leaders move deeper into Venezuela, Brazil and Ecuador.
The first step in the realignment of Fonterra and Nestlé’s Latin American alliance has taken effect. As announced in May this year, Fonterra and Nestlé have revised their 10-year-old Dairy Partners Americas (DPA) joint venture to better reflect each company’s respective strategies.
Fonterra now has a 51 per cent controlling stake in DPA Brazil, with Nestlé holding the balance; and, together with a local partner, Fonterra has taken over Nestlé’s share of DPA Venezuela.
Fonterra’s Managing Director of Latin America, Alex Turnbull, says: "This is an exciting next step for Fonterra and the people in these businesses as they are formally welcomed to the Co-operative."
"We are looking forward to continuing our strong relationship with Nestlé, while giving us the opportunity to further drive our volume and value growth strategy focusing on everyday nutrition offerings."
"The changes we have made are aimed at making our businesses in Brazil and Venezuela even stronger."
Fonterra’s Latin American footprint drives more than 900,000 metric tonnes of volume per year and $3.5 billion (NZD) in revenue from our consumer dairy, foodservice and dairy ingredients.
The other changes to the DPA alliance including Nestlé taking control of DPA Ecuador and the DPA milk powder manufacturing businesses, are still subject to regulatory approval and due to be completed by the end of the year.