The Australian division of New Zealand dairy firm Fonterra has announced that it has signed an agreement to purchase cheese processing firm Dairy Country from food and beverage company Retail Food Group.
According to a Fonterra press release, the acquisition will support the company’s core strengths in the Australian retail cheese category, since Fonterra holds a market share of 23%, with a portfolio that includes brands such as Perfect Italiano, Mainland and Bega.
René Dedoncker, Fonterra Australia managing director, said: “This acquisition is a logical choice and further supports our strategy to be customer and consumer led, while ensuring we keep pace with the fast-growing cheese category in Australia. Dairy Country has two well-equipped secondary processing sites with capability across grating, shredding, and block, as well as an experienced workforce”.
The acquisition, which includes Dairy Country’s processing and packing facilities, its services, intellectual property, and trademark, represented an investment of A$19.23 million ($14.03 million).