Well-known Kiwi dairy brands like Anchor, Fresh'n Fruity and Mainland could be sold off as Fonterra puts its consumer products on the block.
Fonterra is looking to sell its global consumer business and its Oceania and Sri Lanka businesses, which in total accounted for 19 percent in earnings - or $190 million - in the first half of the financial year.
"While these are great businesses with recent strengthening in performance and potential for more, ownership of these businesses is not required to fulfil Fonterra's core function of collecting, processing and selling milk," said chief executive Miles Hurrell.
Hurrell also said the co-operative has already received unsolicited interest in its consumer division and expects the sales process to take between 12 and 18 months. It would seek shareholder support for a "divestment" of this size.
Fonterra described the move as a step-change in strategic direction as it prioritises its ingredients and food service divisions.
Those parts of the co-operative are responsible for using 93 percent of the milk solids collected from dairy farmers. They also generate the bulk of Fonterra's earnings.
Brands possibly affected by the sale include Anchor, Fresh'n Fruity, Perfect Italiano, Mainland and Kapiti.
Consumer brands and associated businesses include 17 Fonterra-owned manufacturing sites around the world, including three in New Zealand.
