Fonterra has confirmed the sale of Tip Top to global food business Froneri for $380 million. While rumours about the sale had been speculating for weeks, Fonterra’s CEO Miles Hurrell today confirmed the news stating that the moment was bittersweet.

“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. Over that time, we’ve had strong support from New Zealanders, and I want to recognise and thank them for that,” he said. “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 licencing its use for ice cream to Froneri. This means our popular Kāpiti cheese isn’t going anywhere. “

“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.”

Froneri is the third largest ice cream manufacturer in the world with its brands in over 20 different countries. Froneri CEO Ibrahim Najafi said the Tip Top name and its operations, including the Auckland based factory site at Mount Wellington will be maintained. “We have always admired Tip Top as New Zealand’s favourite and most trusted ice cream brand. The acquisition enhances our scale and supports our vision to build the world’s best ice cream company.”

The settlement date is 31 May 2019.