Fonterra’s elaborating on the details of their consumer brand sell-off. 

The conundrum comes off the back of a monster half year result in which operating profit rose to 16%. 

The planned divestment could see brands like Anchor and Mainland sold off. 

CEO Miles Hurrell told Mike Hosking the key for any good business is knowing what you’re good at.  

He says that over the years, the returns as an ingredients business have been stellar, but farmers aren’t getting the desired return on capital from the consumer side of things. 

He says they believe they can get higher returns from investing that cash back into ingredients and food service.  

LISTEN ABOVE 

Fonterra’s elaborating on the details of their consumer brand sell-off.&nbsp;
The conundrum comes off the back of a monster half year result in which operating profit rose to 16%.&nbsp;
The planned divestment could see brands like Anchor and Mainland sold off.&nbsp;
CEO Miles Hurrell told Mike Hosking the key for any good business is knowing what you’re good at. &nbsp;
He says that over the years, the returns as an ingredients business have been stellar, but farmers aren’t getting the desired return on capital from the consumer side of things.&nbsp;
He says they believe they can get higher returns from investing that cash back into ingredients and food service. &nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion,...

The Mike Hosking Breakfast

Miles Hurrell: Fonterra CEO explains the reasoning behind selling off consumer brands

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/6258654c-d987-4973-8827-b2ac015111e4/transcript