Source: Business News Today
Froneri acquisition of Tip Top : Global ice cream manufacturer Froneri has agreed to acquire Tip Top, a New Zealand ice cream brand, from dairy giant Fonterra for NZ$380 million ($250.3 million).
Founded in 1936, Tip Top came under the ownership of Fonterra in 2001 as part of its acquisition of Peter and Browne’s foods business. Tip Top, which has an annual production of about 41 million liters of ice cream, exports its products to Japan, Australia, Indonesia, Taiwan, Malaysia, and the Pacific Islands.
Miles Hurrell – Fonterra CEO, commenting on Froneri acquisition of Tip Top, said: “This came through in both the number and quality of bids we received. It’s a fantastic brand and as a result, we’ve secured a good price for our farmers and unit holders.
“One of the big attractions for Froneri is the fact that Tip Top and Kāpiti ice cream both use fresh milk and cream, from New Zealand grass-fed cows. We’ve signed an agreement with the new owners to supply milk which ensures that Fonterra farmers will continue to be part of the Tip Top story.”
Miles Hurrell revealed that Fonterra will retain full global ownership of the Kapiti ice cream brand and will give the licensing rights for its use for ice cream to Froneri.
He further added that the Tip Top ice cream business requires continued investment and focused ownership to be sustained for the long run, which will not be possible with Fonterra as of now.
Froneri, which is a joint venture between AI Partners and Nestle, said that the Tip Top ice cream brand and its operations, including an ice cream factory site at Mount Wellington in Auckland will be maintained. The Tip Top ice cream business will continue to be overseen by its existing management team.
Commenting on Froneri acquisition of Tip Top, Ibrahim Najafi – Froneri CEO, said: “We have always admired Tip Top, which is an iconic brand in New Zealand with a long proud history and we are looking forward to welcoming the team into Froneri. Our vision is to build the world’s best ice cream company; an important part of our strategy is to develop local market successes and roll them out across our other markets.”
“Our consumers are at the heart of our business and we intend to invest in the Tip Top brands, products and manufacturing facility to ensure we continue to excite the market and New Zealanders with delicious high-quality ice cream made from fresh New Zealand milk and cream.”
Froneri acquisition of Tip Top is anticipated to be completed by the end of May 2019.