This potential sale is a key component of Fonterra’s strategic turnaround. The co-op aims to divest its entire global consumer and integrated businesses, including iconic New Zealand brands like Anchor and Mainland. The new strategy would see Fonterra refocus its operations entirely on its core strengths: ingredients and food service. This move is intended to streamline the business and maximize returns by concentrating on what the company considers its most profitable segments.

The article highlights a crucial distinction between the reported bidders. While other potential buyers include publicly listed companies like Japan’s Meiji and Australia’s Bega Group, Lactalis is a privately held company owned by the wealthy Besnier family. This distinction is significant as a sale to Lactalis would end the possibility of the consumer brands business being sold in an Initial Public Offering (IPO), which would have provided an opportunity for KiwiSaver funds to invest in the local dairy industry.

In a key piece of data journalism, the article notes that Lactalis has already secured a major regulatory green light. The Australian Competition and Consumer Commission (ACCC) recently announced that it would not oppose a potential acquisition of Fonterra’s consumer interests in Australia. This regulatory clearance is a strong indicator of Lactalis’s serious intent and its strategic position as a frontrunner in the bidding process for a key part of the global agribusiness sector.