What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
These three beverage companies use whey protein concentrate in either UHT, yoghurt or acid beverage products.
Fonterra's managing director of NZ Milk Products, Gary Romano, said: "Our technical teams have been working closely this weekend with Coca-Cola, Wahaha, and Vitaco and have established that the process used to manufacture their products would kill the bacteria that was in the affected whey protein concentrate.
"In the case of Coca-Cola and Wahaha, the combination of low pH and ultra-high temperature treatment gives us complete confidence that acid beverages and yoghurts (pH <4.5) are safe. In the case of Vitaco, the ultra-high temperature treatment gives us the same confidence.
"We appreciate the way these customers have worked so quickly with us through this process and are pleased to be able to reassure consumers of the safety of their products."
Fonterra will continue to provide updates as they become available.
