Fruit giant SPC diversifies into dairy with Fonterra partnership

AUSTRALIA – SPC Global, a leading Australian food and beverage company, has secured a significant manufacturing agreement with dairy giant Fonterra, marking a strategic expansion into the international dairy processing sector.

Under this groundbreaking arrangement, Nature One—SPC Global’s specialized dairy division—will manufacture Fonterra-branded products exclusively for overseas markets at its Carrum Downs facility.

This collaboration comes at a pivotal moment as Fonterra has recently completed the sale of its Australian assets to French dairy powerhouse Lactalis, reshaping the competitive dynamics of the regional dairy industry.

The dairy processing deal represents part of SPC Global’s broader international expansion strategy, building on earlier successes in Asian markets.

Nature One Dairy has already secured multi-million-dollar distribution agreements for the Chinese market, exporting Australian-made milk powder products to companies operating in the special administrative regions of Hong Kong and Macau.

This diversification into dairy manufacturing complements SPC’s core operations, with the company’s primary fruit processing facilities remaining anchored in Shepparton, northern Victoria.

The Carrum Downs factory now produces a comprehensive range of infant milk formula and specialized powder products targeting various age groups and nutritional needs, positioning SPC as a versatile player in both traditional food processing and premium dairy manufacturing.

SPC managing director Robert Iervasi has confidently addressed potential concerns about the ownership transition, emphasizing his company’s strong working relationships with both Fonterra and Lactalis.

Iervasi assured stakeholders that the change in Fonterra’s Australian ownership structure will have no adverse impact on the manufacturing agreement, demonstrating the stability and long-term viability of this strategic partnership.

Recently, Fonterra, a dairy manufacturer, has agreed to sell its Consumer and associated businesses to Lactalis for NZD 3.845 billion (US$2.245 billion).

The sale comprises Fonterra’s global Consumer business (excluding Greater China) and Consumer brands; the integrated Foodservice and Ingredients businesses in Oceania and Sri Lanka; and the Middle East and Africa Foodservice business.

In addition to the base enterprise value of $3.845 billion, there is potential for a further $375 million increase from the inclusion of the Bega licences held by Fonterra’s Australian business, which, if progressed, would take the headline enterprise value of the transaction up to $4.220 billion.

Fonterra Chairman Peter McBride stated that over the last 15 months, the Board has thoroughly evaluated the terms and value of both a trade sale and an initial public offering (IPO) as divestment options.

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