ZURICH (Reuters) – Swiss food group Nestle SA (SIX:NESN) and New Zealand’s dairy producer Fonterra Co-operative Group said they would review strategic options for their Dairy Partners Americas (DPA) joint venture in Brazil, which could include a potential sale.
Nestle is currently streamlining its portfolio and has divested several underperforming businesses, including its skin health unit.
The review should ensure the long-term growth and success of the business that posted sales revenue of 1 billion Brazilian reais ($247.5 million) in 2018, both companies said in a joint statement late on Wednesday, adding the review was expected to be ready by the end of 2019.
The two partners created DPA as a 50:50 joint venture (JV) in 2003 to manufacture and commercialize chilled and liquid dairy products in Latin America. The JV was realigned in 2014 to focus on chilled dairy in Brazil, with Fonterra taking a 51% stake and Nestle holding remaining 49%.
($1 = 4.0403 reais)