Murray Goulburn halts baby formula deal talks
Both companies agreed on a framework agreement in March, wherein both companies were negotiating a strategic supply alliance for the supply of nutritional products. Murray Goulburn remains committed to B2B nutritionals strategy and are looking into continuing at other ways to work together.
“MJN views MG as a valued partner and we continue to have an excellent relationship with them. As part of this relationship, we intend to continue to explore new ways to work together,” said Murray Goulburn’s interim chief executive officer David Mallinson. “MG remains committed to developing a leading B2B nutritionals business for all export markets and we will continue to assess the best possible way to invest for future growth in this business.”
Mallinson also announced that Murray Goulburn will now review its strategy for its nutritionals investment to ensure the company is maximising value for its suppliers and owners, while exercising discipline with its capital. This is consistent with their announced approach to its beverages investment.
The dairy company said its supply deal with Indonesia’s Kalbe Nutritionals, announced at the same time, still remains in place. Approximately 90 per cent of Murray Goulburn’s existing nutritional sales are destined for markets outside of China.