Fonterra Australia and Bellamy’s Australia Limited have entered into a five-year strategic agreement for the manufacture of a new range of infant nutritional powders as Fonterra pursues the transformation of its Australian business.

 

“We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity,” said Fonterra Managing Director, Judith Swales in a company press release, adding, “This is our strategy in action for Australia where we focus on the areas we can win in a highly competitive market to deliver the best returns.”

 

Fonterra’s existing Australian business has strengths in whey, cheese, and nutritionals, and this multi-million strategic partnership with Bellamy’s, one of Australia’s fastest growing infant formula producers, will reinforce Fonterra’s nutritionals platform.

 

Bellamy’s has expertise in the organic ingredient space and strong brand presence, and has seen sustained growth over the long term. In 2014/15 the company saw a sharp jump in revenue, seeing a year on year increase of 156% with infant formula accounting for 88% of the company’s sales.

 

While supporting Fonterra’s plan to restore its Australian business to a state of growth and profitability, the agreement will also help support Bellamy’s Organic in its pursuit of growth both domestically and overseas.