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- Release Date: 30/05/12 10:30
- Summary: GENERAL: FCG: FONTERRA AND A-WARE FOOD GROUP ANNOUNCE PARTNERSHIP
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FCG
30/05/2012 08:30
GENERAL
REL: 0830 HRS Fonterra Co-operative Group Limited
GENERAL: FCG: FONTERRA AND A-WARE FOOD GROUP ANNOUNCE PARTNERSHIP
FONTERRA AND A-WARE FOOD GROUP ANNOUNCE EUROPEAN PARTNERSHIP
New Zealand-based Fonterra and the Netherlands-based A-Ware Food Group
announced that they had signed a Memorandum of Understanding to establish a
new cheese and dairy ingredients factory in the Netherlands.
Under the agreement, A-Ware Food Group will operate a new cheese plant and
Fonterra will operate a dairy ingredients plant alongside this. Whey and
lactose produced onsite will be processed into premium nutritional
ingredients to supply Fonterra's customers throughout Europe and Asia.
Fonterra CEO Theo Spierings said the proposed investment fitted well with the
strategic priorities of both companies.
"One of the key priorities identified in Fonterra's recent Strategy Refresh
was to focus on nutrition for the vulnerable and to promote mobility among
ageing populations globally," said Mr Spierings.
"We have substantial intellectual property in the manufacture of functional
whey protein ingredients and have been looking for some time for a source of
high quality whey to enable us to commercialise these innovations for our
customers around the world.
"With our New Zealand Milk business driving hard to optimise returns, we are
producing more milk powders in New Zealand and therefore need alternative
sources of whey to meet growth requirements. We also need more lactose for
our global ingredient business. This partnership will give us greater access
to both."
Koert Liekelema, MD Fonterra Europe added: "With this investment we will
secure a high quality whey source that allows for the manufacturing of
premium whey protein ingredients at scale. Customer demand for these products
is growing fast around the globe."
A-Ware in The Netherlands is a significant provider of premium cheese in
Europe with a strong history and network. A-Ware is well placed to integrate
the new cheese plant into its supply chain.
A-Ware Food Group CEO Jan Anker said: "We are now set to take the next step
in the manufacturing of cheese. This will help us to expand our service
offering with increased flexibility for our growing customer base in Europe.
"As a family owned business, we aim to firmly anchor our business in the
Dutch dairy industry and look forward to cooperating directly with Dutch
dairy farmers in the future."
The two companies will now commence full due diligence on the proposal, with
a view to concluding the transaction later this year.
End CA:00223371 For:FCG Type:GENERAL Time:2012-05-30 08:30:06
