Fonterra and Nestlé form alliance

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07 September 2001
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The new dairy giant, the New Zealand Fonterra, is likely to enter an alliance with the world’s largest food group, Nestlé.

In a press statement Nestlé announced that the two companies are in talks about a joint venture for the production of dairy products in North, Central and South America. The venture will not include cheese, butter or infant formula.
The press release follows last week’s announcement of the new group’s name, Fonterra. The merger between New Zealand’s two largest dairy companies, New Zealand Dairy Group and Kiwi Co-operative and the New Zealand dairies’ export organisation, New Zealand Dairy Board, is expected to become a reality next month.

With 11 billion kg milk received, Fonterra will be the world’s second largest dairy group after the American co-operative, Dairy Farmers of America, DFA, which receives 16.5 billion kg milk per year. Arla Foods ranks third with 7.1 billion kg milk received per year.

Nestlé’s turnover last year totalled DKK 400 billion. The group employs a staff of 220,000 world-wide.

Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.

Press contact

Arla Group Press Office
Arla Group Press Office (journalists/media only) +4591310310
Åse Andersson
Åse Andersson Head of Media Press contact for Arla Foods in Denmark +45 91 310 310 +45 89 38 10 00
Carina Østergaard
Carina Østergaard Corporate Communication Manager Press contact for Arla Foods International +45 91 31 16 01 +45 89 38 10 00