Swiss meals group Nestle SA and New Zealand’s dairy producer Fonterra Co-operative Group mentioned they might evaluation strategic choices for his or her Dairy Companions Americas (DPA) three-way partnership in Brazil, which may embody a possible sale.
Nestle is at present streamlining its portfolio and has divested several underperforming companies, together with its pores and skin well-being unit.
The overview ought to make sure the lengthy-time period development and success of the enterprise that posted gross sales income of 1 billion Brazilian reais ($247.5 million) in 2018, each corporation mentioned in a joint assertion late on Wednesday, including the evaluate were anticipated to be prepared by the tip of 2019.
The two companions created DPA as a 50:50 three-way partnership (JV) in 2003 to fabricate and commercialize chilled and liquid dairy merchandise in Latin America. The JV was realigned in 2014 to deal with chilled dairy in Brazil, with Fonterra taking a 51% stake and Nestle holding remaining 49%.
($1 = 4.0403 reais)