Push Accelerates With Pastryhouse Acquisition

17 January 2006

Foodservices Push Accelerates With Pastryhouse Acquisition

Fonterra's push into the rapidly expanding foodservices sector has continued with the co-operative's acquisition of Auckland bakery The Pastryhouse.

Fonterra Global Foodservice Director George Zoghbi says The Pastryhouse's range of products will complement Fonterra's existing global foodservices businesses. The Pastryhouse makes quality ready-to-use products, high in dairy content, with a reputation for good taste and consistency, which meet the demands of foodservice customers and which have the potential for international expansion.

"The Pastryhouse is a small but significant 'stepping stone' acquisition which fits well with Fonterra Foodservices' growth strategy into the ready-to-use range. In New Zealand and Australia we are the only business to offer foodservice customers every dairy segment. The Pastryhouse enables us to further expand the boundaries of dairy."

The acquisition is being made through Fonterra subsidiary Tip Top, which is buying The Pastryhouse from its three shareholders.

The Pastryhouse makes croissants and danish pastries and sells them mainly to supermarket inhouse bakeries, hotels and other foodservice customers. The major growth opportunities under Fonterra ownership will be in Australia and Asia, taking advantage of Fonterra's ability to supply Anchor butter ingredients, and leveraging Fonterra's existing presence in these markets.

Tip Top's expertise in frozen food manufacturing and short-run capabilities with a wide product range make it a natural "home" for The Pastryhouse, which will continue to operate on a standalone basis, but with access to Tip Top's expertise, said Mr Zoghbi.

"Some of the opportunities we will explore include augmenting the company's products with dairy-based fillings and rebranding as Anchor in Asia. Pastryhouse products in Australia are already branded with the leading Western Star butter name under a distribution agreement with Fonterra Brands (Australia). We expect that relationship to be strengthened with Fonterra's full ownership."

ENDS

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