Co-op has a backup plan should shareholders vote to retain brands.

Fonterra has a backup plan to retain its consumer brands and businesses should they not attract enough buyer interest or shareholders vote to retain them, the co-op’s annual meeting heard.

Chief executive Miles Hurrell said the process of separation and untangling would show shareholders exactly what constitutes the consumer division.

“In New Zealand it is pretty well Takanini and Eltham, but overseas the resources and people are shared.

“We are not conducting a forced sale, as we believe there is a different natural owner than Fonterra.

“If the decision is ultimately made to retain, either by shareholders or management, you will know exactly what the consumer businesses look like and how they can be structured to deliver the returns you would seek.”

Chair Peter McBride said Plan B would look like more investment with capital, mergers and acquisitions and research.

“You can’t run a consumer business by being in and out and transactional.

“If you are in for the long haul you must be prepared to double down when the going gets tough.

“That doesn’t really fit in a co-operative, in terms of capital sources,” he said.

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