Fonterra and Bellamy’s team up for baby nutritional powders

Fonterra Australia and Bellamy’s Australia have announced plans to enter into a five year, multi-million dollar strategic agreement to manufacture a range of new baby nutritional powders.

Fonterra Managing Director Oceania Judith Swales says the announcement is part of Fonterra’s transformation of its Australian business.

“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,” said Ms Swales. “We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.”

Fonterra will manufacture the baby nutritional powders at its Darnum manufacturing plant, in southeast Victoria.

Ms Swales commented: “The Darnum plant is a leading nutritionals plant in Fonterra’s global network. Leveraging our Fonterra Research and Development Centre in Palmerston North, the largest dairy innovation centre in the southern hemisphere, we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand.”

Bellamy’s has seen exceptional growth in 2014-2015

Bellamy’s is one of the fastest growing infant formula companies with strong brand recognition and expertise in the organic ingredient supply chain. Bellamy’s has experienced continued growth over many years, and financial year 2014-15 has been exceptional, achieving revenue growth of 156% from the year prior. Formula comprises 88% of Bellamy’s sales.

Commenting on the announcement, Bellamy’s Australia CEO and Managing Director, Laura McBain, said, “We have been working throughout this year to seamlessly add capacity so that we can meet the growing demand for our certified organic formulas from Australian parents and our export markets. This arrangement means that significant additional capacity would be available to Bellamy’s adding to its current capabailities.”

Fonterra and Bellamy’s will work to finalise the proposed arrangements by the end of the year, with the agreement commencing in 2016.