Dairy giant Fonterra confirmed it would sell its consumer products business—including well-known brands like Anchor and Mainland—to French dairy company Lactalis for nearly $4 billion. The move, still awaiting final approval from Fonterra’s farmer-shareholders, could reshape the future of New Zealand’s dairy industry.
Fonterra is owned by around 10,000 farmers and mainly sells milk as ingredients to food companies. Only about 7% of its business involves consumer goods like cheese, milk, and yoghurt. The company says selling these products will allow it to focus on its core strength: producing dairy ingredients for global markets.
The sale includes major brands such as Kāpiti, Perfect Italiano, Fresh’n Fruity, and Anlene, plus manufacturing sites in New Zealand and overseas. Farmers who own shares in the co-operative would receive a $2 per share tax-free payment if the deal goes ahead, with final voting set to close on 30 October.
Not everyone is happy. New Zealand First leader Winston Peters criticised the deal, saying it risks giving up control of long-trusted local brands. He warned that foreign ownership could impact product quality and New Zealand’s dairy identity. Fonterra, however, insisted the deal protects farmers, with long-term milk supply contracts in place.
ACT Party leader David Seymour argued that the decision should be left to the farmers who own Fonterra, not politicians. The two leaders even exchanged jabs over who had more experience milking cows.
Experts say the sale reflects Fonterra’s shift away from selling products directly to shoppers and towards being a global supplier of dairy ingredients. While some see the sale as a smart business move, others worry it could reduce New Zealand’s control over its own food brands.
