Future Consumer and Fonterra Co-operative Group to wind down 50:50 joint venture - Fonterra Future Dairy; Stock slips 2%

11 Mar 2022 , 10:58 AM

Future Consumer Ltd. and Fonterra Co-operative Group Ltd have agreed to wind down their 50:50 joint venture – Fonterra Future Dairy Private Limited. The joint venture was established in 2018 and has 22 employees, all of which will receive appropriate entitlements, including career transition support and access to counselling, company said in a filing on Thursday.

“The last few years have been challenging for the joint venture with COVID-19 causing significant disruption to the Indian market. Despite this, the joint venture has delivered some important initiatives, including the launch of the Dreamery brand, a range of consumer products made using Indian milk, and distribution of Fonterra’s New Zealand Anchor Food Professionals products for the foodservice sector – both of which have received positive feedback from consumers and customers.

The JV would like to thank the staff, customers, and suppliers of the JV for their partnership. India with its large and growing dairy consuming population remains a viable market for Fonterra and it will continue to have a presence and explore opportunities as they open up,” company said in its regulatory filing.

At around 11.04 am, Future Consumer Ltd was trading at Rs6.81 per piece down by Rs0.16 or 2.3% from its previous closing of Rs6.97 per piece on the BSE.