Australia: Fonterra to sell off Wagga Wagga business

Australia: Fonterra to sell off Wagga Wagga business

The Australian division of New Zealand dairy conglomerate Fonterra has announced that it is selling its Wagga Wagga business, the owner of the Riverina Fresh brand, to investment firm Blue River Group.

Riverina Fresh is present in retail and foodservice channels, producing full cream, light and skimmed milk alongside cream, yoghurt and flavoured milk drinks. As well as local independents, Riverina Fresh milk is sold in Woolworths stores across the state of New South Wales.

The terms of the deal include the sale of the Wagga Wagga manufacturing site, in addition to the Riverina Fresh brand.

Commenting on the move, Fonterra Australia managing director Rene Dedoncker said: "Divesting the Wagga Wagga business follows the divestment of non-core assets, including our yoghurt and dairy desserts business, our Bega shares and our stake in Dairy Technical Services, and allows us to focus and put all our energy into our core businesses of Ingredients, Consumer and Foodservice".

Source: Fonterra