New Zealand Dairy giant, Fonterra announced yesterday that it will be acquiring the troubled Tasmanian yoghurt producer, Tamar Valley Dairy.
Judith Swales, Fonterra Australia’s managing director said that the acquisition will be inclusive of the processing equipment, related services, intellectual property and Tamar Valley Dairy brand trademark and will become effective at the end of this month.
"Fonterra is a long-standing partner of Tamar Valley Dairy, and has supported and worked closely with the administrators of the family-owned business during what has recently been a difficult period for the Tasmanian business and its founders," Swales told The Mercury.
"The founding family has created a business with strong capability and innovation, known for producing new yoghurt formats and formulations, and in a relatively short time frame they have built a national brand in Tamar Valley Dairy."
Tamar Valley’s owner, Archie Matteo, first announced the company’s debt of $9m in April this year. Both Bulla Foods and Tasmanian Pure Foods initially expressed interest in acquiring the processor, only to later drop the idea, leading to the processing being placed on the market for urgent sale in September.
As part of the acquisition, Fonterra has communicated plans to invest in updating and improving manufacturing assets and safety systems, together with further investment in workers and the promotion of innovation within the yoghurt sector.