Bega Group eyes Fonterra’s Oceania business assets

AUSTRALIA – Bega Group, an Australian-based dairy manufacturer, has confirmed it is seeking informal regulatory approval for its potential acquisition of Fonterra’s Oceania business.

This move comes after New Zealand-based Fonterra announced that it would explore full or partial divestment options for ‘some or all’ of its global consumer business, as well as its integrated businesses, Fonterra Oceania and Fonterra Sri Lanka, in 2024.

The planned disposals are part of Fonterra’s strategy to exit its consumer-facing operations to focus on dairy ingredients and the foodservice channel.

In a filing with the Australian Securities Exchange today (16 June), Bega Group said it plans to lodge an application with the Australian Competition and Consumer Commission (ACCC) imminently.

Bega Group stated that it believes that if it were to be included in the sale process and become the successful acquirer of the Oceania assets, it would significantly enhance outcomes for the company and the dairy industry as a whole, particularly in Australia.

“The combination of the Fonterra and Bega Group assets in Australia would lead to greater efficiencies and enhanced outcomes for Australian farmers, customers and consumers,” the company stated.

Bega Group reports revenue of US$1.8 billion in first half of 2025

Recently, the company reported a significant increase in profit and revenue for the first half of the financial year. 

According to the company, revenue hit US$1.8 billion over the six months, marking a 3% rise compared to the same time last year. 

Statutory earnings also soared to US$109 million, a sharp improvement from the US$23 million recorded in the previous year, highlighting a robust performance for the Australian food and beverage giant.

The financial upturn comes amid strategic moves by the company, including the sale of its Leeton juice extraction plant to Grove Juice. 

A report by Bega Group confirmed that the new owners have committed to processing fruit on behalf of the group, ensuring continuity in its operations. 

This transaction has contributed to the overall financial results, supporting the company’s growth trajectory. 

Despite challenges such as lower consumer spending and a trend of down-trading across sales channels, the branded segment of the business saw profitability rise by 8%, a development welcomed by Bega’s leadership.

“We are pleased with the steady growth in our branded products, which continue to perform well despite tough market conditions.” 

The company also emphasized its success in managing finances, noting a reduced debt load as of December 2024 compared to the previous year. 

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