- New Zealand favourite Tip Top ice cream sold for $358 million
- Fonterra let go of 18-year ownership to ice cream giant Fronerri, chosen among various bidders
- The 80-year-old brand name will remain the same and continue to be produced in Auckland, New Zealand
New Zealand Ice Cream company Tip Top was sold to Froneri for NZ$380 million (AUS$358 million) today.
Dairy company Fonterra sold the well-known brand to ice cream manufacturers Froneri, letting go of an 18-year ownership.
Fonterra CEO Miles Hurrell thanked New Zealand customers for their long-time support of the Tip Top brand.
“Tip Top has always listened to consumers and cared about its changing tastes, as well as its long-time favourites. An average of 340 serves of Tip Top are enjoyed every minute of every day,” Miles said.
Fonterra revealed the company had received a number of high quality bids for Tip Top, but decided to sell to Froneri on account of insuring protection of the farming industry and use of high quality milk.
“We’ve signed an agreement with the new owners to supply milk which ensures that Fonterra farmers will continue to be part of the Tip Top story,” Miles said.,
“The well-loved brand needs continuing investment and focused ownership to be sustainable for generations to come. It’s not something we’re in a position to do right now,” he said.
This isn’t the first sale of Tip Top, as the 80-year-old brand name has been owned by several different international distributors before.
Froneri is the world’s third largest ice cream manufacturer, servicing ice cream to 20 countries.
Froneri CEO Ibrahim Najafi assured the Tip Top brand name and Auckland based factory site will remain the same.
“We have always admired Tip Top as New Zealand’s favourite and most trusted ice cream brand. The acquisition enhances our scale and supports our vision to build the world’s best ice cream company,” he said.
Fonterra’s shares remain trading at $4.06 each in the Australian market.
The purchase settlement date is slated for the end of this month at May 31 2019.