February 19, 2025 • 5 mins
Fonterra appears to be advancing its plans to sell off Anchor, Mainland and its other consumer brands.
The co-op hasn't decided whether or not to sell the brands to another business in a trade sale - or whether to list the in an IPO.
NZ Shareholders Association CEO Oliver Mander weighs in on what Fonterra's next move could be.
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Speaker 1 (00:01):
Twenty five away from seven. You're on news Talk ZB tonight.
It's great to have your company now Dennis has text
us And for those who are outside Auckland, you won't
necessarily get this advert that's on the radio at the moment.
But here, if you are in the city of Sales,
you'll hear Wayne Brown placing ads all the way through
News Talk ZEDB to say I'm running for mayor of
(00:22):
Auckland and you should vote for me. And he's done
this to time it with his press conference which was today,
which is quite a shrewd thing to do. And Dennis says, Ryan,
do we have to listen to Wayne Brown adverts from
now all the way until the October election? No, says Dennis,
I would think not. I think they are slightly expensive
things to purchase. I don't imagine he'll be doing all
(00:42):
the way till October. However, I think it's a smart
thing to do because if you'll notice this, no matter
where you live in New Zealand, you will notice that
he who wins the poll wins the election. So what
Wayne Brown is doing is getting out ahead of all
of the competition. Who are they anywayating out ahead of
all the competitions, cementing his name as the one you
(01:03):
vote for early on. Then the polsters come in, they
say who you're going to vote for? People go, well,
there's only one name in town. It's Wayne Brown, and
boom he wins the election, which I think, and it's
an easy prediction to make that he will. Twenty four
away from seven. Fonterra is advancing its plans for selling
off Anchor, Mainland and its other consumer brands. The co
(01:25):
op hasn't quite decided whether to sell the brands to
another business and a trade sale yet or whether it'll
list them in an IPO. But if there is an IPO,
Fonterra has already chosen a name for the new business,
which would be Mainland Group, and it's already lined up
a potential CEO and CFO. Oliver Amanda is the CEO
of the Shareholders Association. He's with me tonight, Hi, Oliver
(01:46):
got it Ian. What do you reckon it'll be? Do
you reckon trade sale or IPO?
Speaker 2 (01:51):
Well, certainly investors in New Zealand with institutional or individual
investors would really welcome a sale by IPO onto the
inside X. And really given that the fact that the
brands are so well known. That is real, we're real
shot in the arm for the inside X. But also
because it's so well known, it would probably create a
(02:12):
lot of value for Fonterra as well.
Speaker 1 (02:15):
Yeah, you mentioned the brands are very well known. They're
also not just sold here, right, They're sold all over
the world. So for if you're talking about investors coming
at it from a sheer market point of view, that's
got to be attractive.
Speaker 2 (02:28):
And Ye're absolutely right. So certainly from an investor viewpoint,
is the fact that the brands are well known here,
that they recognize the strong domestic cash flows here with
the New Zealand, or at least we're assuming there are.
But also there's that opportunity for growth from an international market.
And I think from a New Zealand Inc. Perspective, from
a broader New Zealand perspective, that's why it's almost really
important that actually that this does become an IPO on
(02:52):
the insietex owned by New Zealand investors, because then you've
got Fonterra strategy playing out. And I've talked about that
being before, about being very manufacturing focused wholesale or supply
chain business and then you get that real long term
value that's that's brought about by investment in brands.
Speaker 1 (03:11):
I suppose you would say this being the shareholders Association.
Speaker 2 (03:15):
I mean you could argue that, but I think this
also comes down to where the best value is for volunteerra.
And look, I think individual investors and installitutional New Zealand
based investors would would probably pay a premium to get
hold of a really high performing asset compared to what
a private equity or a trade trade sale for the
sorts of returns that they'd be.
Speaker 1 (03:34):
Looking for and which it could also mean that it
goes offshore as well, right the ownership which not great
for us.
Speaker 2 (03:40):
And that's absolutely right. So from a New Zealand Ink perspective,
as I said, I mean, this is really about trying
to preserve as much value as we can in New Zealand.
So Fonterra strategy is all about trying to really sweet
that manufacturing supply chain process. That's great for them. But
then from a New Zealand perspective, let's try to preserve
that long term value in the brands and mainland group
as it's post Actually that would do that, that would
(04:02):
preserve value for investors and create longer term value for
New Zealand.
Speaker 1 (04:06):
In Oliver, what do we know about the potential CEO
and CFO and is it unusual before they've even decided
how they'll sell it or whether they'll do an IPO
to sort of sound some out.
Speaker 2 (04:17):
I don't think it's particularly unusual. I mean, what you've
got here is a leadership or the emergence of a
leadership team. If you're trying to promote an IPO into
the market, actually getting getting that leadership team introduced to
potential investors is actually a really good idea and certain
that the blend that you have here, you know, a
long term volunteer employees, someone who is someone who the
(04:40):
business has grown themselves into having the right capability that's
needed for that business, and then also bringing in the
right blend of external experience and that can provide a
fresh perspective. And that's with the proposed CFL and Paul Victor.
So No, look, I don't think it's particularly unusual. I
think it's good for the market. It's good for the
company to go out and introduce the people. It will
(05:00):
become really important to investors as this business comes on
to the Stock Exchange.
Speaker 1 (05:05):
Good stuff, Oliver, thank you very much for that. Great
to have you on the show. Oliver Amanda the New
Zealand shareholders Association's CEO.
Speaker 2 (05:11):
For more from Hither Duplessy, Allen Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
Twenty five away from seven. You're on news Talk ZB tonight.
It's great to have your company now Dennis has text
us And for those who are outside Auckland, you won't
necessarily get this advert that's on the radio at the moment.
But here, if you are in the city of Sales,
you'll hear Wayne Brown placing ads all the way through
News Talk ZEDB to say I'm running for mayor of
(00:22):
Auckland and you should vote for me. And he's done
this to time it with his press conference which was today,
which is quite a shrewd thing to do. And Dennis says, Ryan,
do we have to listen to Wayne Brown adverts from
now all the way until the October election? No, says Dennis,
I would think not. I think they are slightly expensive
things to purchase. I don't imagine he'll be doing all
(00:42):
the way till October. However, I think it's a smart
thing to do because if you'll notice this, no matter
where you live in New Zealand, you will notice that
he who wins the poll wins the election. So what
Wayne Brown is doing is getting out ahead of all
of the competition. Who are they anywayating out ahead of
all the competitions, cementing his name as the one you
(01:03):
vote for early on. Then the polsters come in, they
say who you're going to vote for? People go, well,
there's only one name in town. It's Wayne Brown, and
boom he wins the election, which I think, and it's
an easy prediction to make that he will. Twenty four
away from seven. Fonterra is advancing its plans for selling
off Anchor, Mainland and its other consumer brands. The co
(01:25):
op hasn't quite decided whether to sell the brands to
another business and a trade sale yet or whether it'll
list them in an IPO. But if there is an IPO,
Fonterra has already chosen a name for the new business,
which would be Mainland Group, and it's already lined up
a potential CEO and CFO. Oliver Amanda is the CEO
of the Shareholders Association. He's with me tonight, Hi, Oliver
(01:46):
got it Ian. What do you reckon it'll be? Do
you reckon trade sale or IPO?
Speaker 2 (01:51):
Well, certainly investors in New Zealand with institutional or individual
investors would really welcome a sale by IPO onto the
inside X. And really given that the fact that the
brands are so well known. That is real, we're real
shot in the arm for the inside X. But also
because it's so well known, it would probably create a
(02:12):
lot of value for Fonterra as well.
Speaker 1 (02:15):
Yeah, you mentioned the brands are very well known. They're
also not just sold here, right, They're sold all over
the world. So for if you're talking about investors coming
at it from a sheer market point of view, that's
got to be attractive.
Speaker 2 (02:28):
And Ye're absolutely right. So certainly from an investor viewpoint,
is the fact that the brands are well known here,
that they recognize the strong domestic cash flows here with
the New Zealand, or at least we're assuming there are.
But also there's that opportunity for growth from an international market.
And I think from a New Zealand Inc. Perspective, from
a broader New Zealand perspective, that's why it's almost really
important that actually that this does become an IPO on
(02:52):
the insietex owned by New Zealand investors, because then you've
got Fonterra strategy playing out. And I've talked about that
being before, about being very manufacturing focused wholesale or supply
chain business and then you get that real long term
value that's that's brought about by investment in brands.
Speaker 1 (03:11):
I suppose you would say this being the shareholders Association.
Speaker 2 (03:15):
I mean you could argue that, but I think this
also comes down to where the best value is for volunteerra.
And look, I think individual investors and installitutional New Zealand
based investors would would probably pay a premium to get
hold of a really high performing asset compared to what
a private equity or a trade trade sale for the
sorts of returns that they'd be.
Speaker 1 (03:34):
Looking for and which it could also mean that it
goes offshore as well, right the ownership which not great
for us.
Speaker 2 (03:40):
And that's absolutely right. So from a New Zealand Ink perspective,
as I said, I mean, this is really about trying
to preserve as much value as we can in New Zealand.
So Fonterra strategy is all about trying to really sweet
that manufacturing supply chain process. That's great for them. But
then from a New Zealand perspective, let's try to preserve
that long term value in the brands and mainland group
as it's post Actually that would do that, that would
(04:02):
preserve value for investors and create longer term value for
New Zealand.
Speaker 1 (04:06):
In Oliver, what do we know about the potential CEO
and CFO and is it unusual before they've even decided
how they'll sell it or whether they'll do an IPO
to sort of sound some out.
Speaker 2 (04:17):
I don't think it's particularly unusual. I mean, what you've
got here is a leadership or the emergence of a
leadership team. If you're trying to promote an IPO into
the market, actually getting getting that leadership team introduced to
potential investors is actually a really good idea and certain
that the blend that you have here, you know, a
long term volunteer employees, someone who is someone who the
(04:40):
business has grown themselves into having the right capability that's
needed for that business, and then also bringing in the
right blend of external experience and that can provide a
fresh perspective. And that's with the proposed CFL and Paul Victor.
So No, look, I don't think it's particularly unusual. I
think it's good for the market. It's good for the
company to go out and introduce the people. It will
(05:00):
become really important to investors as this business comes on
to the Stock Exchange.
Speaker 1 (05:05):
Good stuff, Oliver, thank you very much for that. Great
to have you on the show. Oliver Amanda the New
Zealand shareholders Association's CEO.
Speaker 2 (05:11):
For more from Hither Duplessy, Allen Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
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