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Flavoured milk sales sour takeover tussle
30 Nov 2004
National Foods and Fonterra are exchanging barbs about the recent performance and prospects of the Australian-owned dairy processor, which faces a hostile takeover bid from the Kiwi group. National Foods said it expected a 14 per cent increase in profit for in the 2005 financial year. Fonterra asserts that National Foods is relying on cost cutting rather than product development and sales growth to drive profits. In addition, Fonterra contend that National Foods' brands are in decline, and cite the example of the loss of market share in flavoured milk. National Foods retort that Fonterra’s data referred only to the grocery channel and that 78 per cent of the flavoured milk market is outside the grocery channel. National Foods say they increased their share of the flavoured milk market by 13 per cent over the last year.
Sydney Morning Herald, 30/11/04
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