Fonterra’s sale of Soprole, its operation in Chile, to Peruvian firm Gloria Foods is part of the diary giant’s renewed focus on its operations in New Zealand.
“Soprole ... does not rely on New Zealand milk or expertise,” Fonterra CEO Miles Hurrell said when the sale was announced, reiterating the company’s focus on New Zealand milk. Fonterra had flagged the sale of its Chilean assets in its “path to 2030” strategy document, so the divestiture is no surprise.
The other major plan to retrench the company cited in the 2030 plan did not go so well. The document said Fonterra would “review ownership options” for Fonterra Australia, including the possibility of an IPO. In September 2021, Hurrell said having access to external capital would make the Australia business “placed to deliver on its strategy and capture its full potential.”
Fast forward to September of this year and the Australian IPO is off the cards, with Hurrell saying “The business is going well, and it will play a key role in helping us get to our 2030 strategic targets.”