National Foods and Fonterra Announce Agreement on SKI Brand

Under the agreement, for the next two years National Foods would continue to manufacture, on behalf of Fonterra, the entire range of SKI yoghurts presently produced at the Dairy Farmers Wetherill Park production facility.

08/10/08 National Foods and Fonterra announced that they have entered into a heads of agreement for Fonterra to acquire the SKI licence and associated intellectual property from National Foods should National Foods successfully acquire Dairy Farmers.

In September 2008, Fonterra acquired the rights to manufacture, market and sell Nestlé’s yoghurt and dairy dessert brands in Australia. As a part of that transaction Fonterra also acquired the long term rights to the SKI brand from 2012. SKI had been licensed to Dairy Farmers up to 2012.

The agreement between Fonterra and National Foods is conditional on the Dairy Farmers shareholder vote and regulatory approval.

Under the agreement, for the next two years National Foods would continue to manufacture, on behalf of Fonterra, the entire range of SKI yoghurts presently produced at the Dairy Farmers Wetherill Park production facility.

Continued full production of SKI at Wetherill Park will ensure continuity of supply and maintenance of quality for SKI products in Australia.

In Australia, Fonterra produces and markets leading household dairy brands, including Mainland, Western Star, Perfect Italiano, Anlene, Brownes, Nestlé Diet and Nestlé All Natural.

National Foods is one of Australia’s largest branded food and beverage businesses with core activities in milk, fresh dairy foods, juice, soy beverages and specialty cheese.