Froneri, the joint venture created by Nestlé S.A., Switzerland, and R&R Ice Cream, UK, acquired Tip Top, New Zealand, from Fonterra for $380 million.
“Since we took ownership of Tip Top in 2001, a lot of work has gone into ensuring it remained New Zealand’s leading ice cream company,” says Miles Hurrell, chief executive officer of Fonterra. “Over that time, we’ve had strong support from New Zealanders, and I want to recognize and thank them for that.
“Tip Top has always listened to consumers and cared about their changing tastes, as well as their long-time favorites. An average of 340 serves of Tip Top are enjoyed every minute of every day.
“This came through in both the number and quality of bids we received. It’s a fantastic brand, and as a result, we’ve secured a good price for our farmers and unit holders.
“One of the big attractions for Froneri is the fact that Tip Top and Kāpiti ice cream both use fresh milk and cream from New Zealand grass-fed cows. 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.
“We will also retain full global ownership of the Kāpiti brand, and will be licensing its use for ice cream to Froneri. This means our popular Kāpiti cheese isn’t going anywhere.
“I get the strong connection New Zealanders have with Tip Top. It will be important for them to see that it’s in good hands.
“It’s been a privilege being the guardians of Tip Top, but it’s time to hand the baton to new owners. 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.”
The Tip Top name and its operations, including the Auckland, New Zealand-based factory site at Mount Wellington, will be maintained.
“We have always admired Tip Top as New Zealand’s favorite and most trusted ice cream brand,” adds Ibrahim Najafi, chief executive officer of Froneri. “The acquisition enhances our scale and supports our vision to build the world’s best ice cream company.”