Fonterra has confirmed it is looking at a potential sale of Tip Top ice cream, as it looks to pay down debt.
The co-op is carrying out a strategic review of its assets, after posting a $196 million dollar loss for the year ending July.
- Tip Top icecream sale possible, reports
- Tip Top's 2 litre cookies and cream tubs still missing from supermarket shelves
Fonterra Chairman John Monaghan has confirmed a sale is possible
"We are looking at our ongoing ownership of Tip Top and have appointed FNZC ( First NZ Capital ) as our external advisor to work with us as we consider a range of options," he said.
He said the co-op is keen to see Tip Top remain a New Zealand-based business and that is being factored into our options.
"While performing well, Tip Top is our only ice cream business and has reached maturity as an investment for us," said Mr Monaghan.
"To take it to its next phase successfully will require a level of investment beyond what we are willing to make," he said,
Fonterra is carrying out a full portfolio review of assets, investments and partnerships.
"We are moving quickly to meet our commitment to reducing our debt levels by $800 million by the end of the financial year," said Mr Monaghan.
Newshub.
