New Zealand has the incredible ability to clutch defeat from the jaws of victory. With food prices rising worldwide, what does the world's largest dairy exporter go and do? They sell off their main brands and go back to being commodity suppliers only.
What they've sold off are the Anchor milk and Mainland cheese brands worldwide. These brands are well known for quality, for instance, in Sri Lanka, population 22 million, milk is called Anchor. They don't say have a glass of milk, they say Anchor.
The thinking of NZ company senior management never rises above what junior high school students would think of, and talking dunce of the class at that, not clever clogs.
What would Coca-Cola do? They'd sell off or franchise their processors and bottling, they'd never sell off their main brands.
Here's a quick primer on Coca-Cola's distribution model: https://fourweekmba.com/coca-cola-business-strategy
These are Fonterra's plans: https://www.rnz.co.nz/news/business/570728/fonterra-sells-mainland-anchor-brands-to-french-food-giant
Why is this a stupid move by Fonterra? In a few years, the new owner could put any milk in those Anchor bottles. Likely, it will be highly subsidised EU milk. The NZ dairy farmer will have their own production impacted, their reputation damaged if the milk is no good as consumers equate NZ milk with these brands, and to compete they'll have to recreate brands all over again, starting from scratch.
Rule 1: Always keep the brand, sell off or licence production.
Fonterra are breaking rule number 1.
