Fonterra’s Pivot: Trimming the Fat, Keeping the Cream

When Fonterra announced plans to divest its consumer brands business in May last year, many New Zealanders were surprised. The portfolio — now dubbed Mainland Group — includes household staples and recognisable brands such as Anchor milk, Mainland cheese, Primo milk, and Fresh’n Fruity yoghurt. Some viewed the move as an admission by Fonterra of its failure to add value. However, we see it as a pragmatic recognition of where Fonterra excels.