Anchor and other NZ brands for sale

Forums › Off topic › Anchor and other NZ brands for sale

1 | 2 | 3 | 4 | 5 | 6

Smpl Mnmlst
9333 posts

Uber Geek
+1 received by user: 6203

ID Verified

Trusted

Lifetime subscriber

#3407400 25-Aug-2025 18:43

johno1234:

lachlanw:

For reference, cheapest butter I can see in Tesco is GBP 9.25 a kg. Convert it to NZD at fx 2.3 you get $NZD21.20 a kg . Cheapest at pak n save is $16.60 a kg. So pretty reasonable.

Looking online,

ASDA, Anchor butter 500g STG3.94 = NZD 18.24/kg

Sainsburys, Anchor butter 200g STG2.60 = NZD 29.9/kg

TESCO, Anchor butter 200g STG2.60 = NZD 29.90/kg

Pak'nSave Anchor butter 500g NZD9.99, $8.68 excl GST = 17.37/kg

Pak'nSave Pams butter 500g $8.21, $7.21 excl GST = NZD 14.12/kg

Could not find 500g price online at Sainsburys or Tesco for plain salted or unsalted Anchor butter.

Note that VAT on butter in the UK is zero. GST on butter in NZ is 15%.

So in reality Anchor butter is as expected, cheaper in NZ than the UK. It is a commodity and just like gold, the price is similar anywhere around the world.

It appears this is not comparing apples and apples.

A search shows:

In the UK, Anchor butter is not usually sold in 500 g packs.

The standard retail sizes are:

• 200 g blocks (Salted and Unsalted)

• 500 g tubs of Anchor Spreadable (blended butter & rapeseed oil)

A 500 g pack is the spreadable version, not the classic pure butter block.

Anchor Salted Butter (200 g)

• Waitrose: Typically priced at £2.00 for a 200 g block.

• Asda: Around £2.07 (approx. £1.04 per 100 g).

• Morrisons: Often on sale—e.g. £2.00, down from about £2.45.

• Tesco: £2.60, with a Clubcard price of £1.85 (valid until 2 September 2025).

• Iceland: Also lists £2.00 for its 200 g Anchor salted butter.

Sometimes I just sit and think. Other times I just sit.

johno1234

3354 posts

Uber Geek
+1 received by user: 2843

#3407410 25-Aug-2025 19:54

So unsalted butter is more expensive in the UK than in NZ taking into account GST

Handle9

11926 posts

Uber Geek
+1 received by user: 9679

Trusted

Lifetime subscriber

#3407433 26-Aug-2025 03:41

sir1963:

Just like NZ banks were sold, I see Anchor etc has been sold to a French company.

Yet more profits going overseas.

What profits? They are selling the business because it's been extremely unsuccessful for a very long time.

It's value destructive to Fonterras shareholders. Fonterra has been terrible at consumer products and is simplifying their business.

Handle9

11926 posts

Uber Geek
+1 received by user: 9679

Trusted

Lifetime subscriber

#3407434 26-Aug-2025 03:44

sir1963:

The government spent more on yacht racing than it would have cost to bail out F&P.

They did not just buy the company, they bought all the IP as well.

How would a bail out help F&P? Their problem was they sold 75% of their products to 30 million people (AU NZ). New Zealand is a terrible place to manufacture large consumer goods.

They couldn't scale so couldn't compete. All a bail out would have done would have been to transfer tax money to F&Ps shareholders.

Handle9

11926 posts

Uber Geek
+1 received by user: 9679

Trusted

Lifetime subscriber

#3407435 26-Aug-2025 03:47

gzt:
I see Anchor etc has been sold to a French company.

NZ products have a decent following in part because of the clean green image. The thought of other countries selling products under the Anchor brand makes me feel a little queasy. Does this mean Fonterra now needs to develop a new brand for selling NZ product? or will Fonterra now pay a license fee to a French company?

Fonterra are not selling consumer goods so have no need to "license" Anchor. They are supplying their divested brands with raw product not trying to start a new consumer products business.

Fonterra is good at getting competitive raw product to market, they are crap at making consumer products so they are stopping and simplifying their business. It makes a huge amount of sense for them.

MikeB4

MikeB4
18775 posts

Uber Geek
+1 received by user: 12766

ID Verified

Trusted

Subscriber

#3407441 26-Aug-2025 07:46

Anchor and Mainland are foundation brands for Fonterra and an iconic brand of Aotearoa. This decision is odd, imagine Apple selling its iPhone brand, Toyota selling its Corolla brand. Aotearoa can do the value add to its primary produce, our lamb. beef, dairy have proven that. This sell off has similarities to the tragic end to our investment many decades ago in forestry on marginal lands, we have sold our trees as logs to offshore markets only to buy them back after the value add has been made by others. Short term gain for long term loss.

Here is a crazy notion, lets give peace a chance.

Lego

Shop now for Lego sets and other gifts (affiliate link).

Dingbatt

6804 posts

Uber Geek
+1 received by user: 3694

Lifetime subscriber

#3407446 26-Aug-2025 09:05

I can’t remember the last time I bought Anchor or Mainland branded dairy products. Mainly because I am unwilling to pay a premium over housebrand versions of the identical product. Having worked in the dairy industry (albeit last century) the only difference is the packaging.

“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996

sir1963

3428 posts

Uber Geek
+1 received by user: 3756

Subscriber

#3407451 26-Aug-2025 09:27

I understand that New Zealand is the only country that relies on primary produce to make a profit.
Other countries its a side product.

However the continued large volume, low profit goods are not a long term business model anymore.
Why are we not doing more of the value added products more which have higher profit margins.

Fontera is coming across as a one trick pony, Milk Powder.

We also have the issue of whole Log exports, live animal exports, again bottom of the rung stuff that give the added value to other countries.

And THEN we allow a foreign company to buy NZ electricity on the cheap for Bluff while killing off value added exports in paper and wood products because electricity is too expensive.
The profits from Bluff went overseas, the profits from paper etc stayed here in NZ.

johno1234

3354 posts

Uber Geek
+1 received by user: 2843

#3407454 26-Aug-2025 09:33

Dingbatt:

I can’t remember the last time I bought Anchor or Mainland branded dairy products. Mainly because I am unwilling to pay a premium over housebrand versions of the identical product. Having worked in the dairy industry (albeit last century) the only difference is the packaging.

I've done work for the old Fonterra Brands business and I have toured a couple of factories. You are correct that it is identical. The supermarket brand milk comes out of the same tank as the Anchor milk and the supermarket butter comes out of the same process as Anchor but with different paper loaded into the wrapper. They really can't be different as food regulations in NZ don't allow milk and butter to be anything but milk and butter.

For NZ consumers the branding means little. However the cheese and butter factories will presumably be included with the brands in the sale.

Fonterra shareholders have approved this and for good reason. They can get a better ROI without the complexity, uncertainty and overhead of the brands business. More credit to them. Some people think we become wealthy by owning underperforming assets. There's a reason those people are not paid for their opinions.

MikeB4

MikeB4
18775 posts

Uber Geek
+1 received by user: 12766

ID Verified

Trusted

Subscriber

#3407461 26-Aug-2025 09:59

I agree with the generic product sameness. My main point is the two foundation brands for Fonterra are Anchor, Mainland and Fresh n Fruity. They have spent decades investing in these brands and have established a global recognition and market. The profits from that investment will flow to an off shore balance sheet and investors. It risks diluting other Fonterra brands due to continued association with the Anchor brand. The decision will leave the domestic market here at risk of higher pricing.

Here is a crazy notion, lets give peace a chance.

mudguard

2327 posts

Uber Geek
+1 received by user: 1250

#3407508 26-Aug-2025 10:25

sir1963:

And THEN we allow a foreign company to buy NZ electricity on the cheap for Bluff while killing off value added exports in paper and wood products because electricity is too expensive.
The profits from Bluff went overseas, the profits from paper etc stayed here in NZ.

The problem with the smelter argument is that it likely would not exist without foreign ownership.

We could shut it, connect to the grid and enjoy cheaper electricity. But presumably it would accelerate Invercargill's decline. I assume if we increased the price too high it would simply shut.

Lego

Shop now for Lego sets and other gifts (affiliate link).

SaltyNZ

8867 posts

Uber Geek
+1 received by user: 9548

Trusted

2degrees

Lifetime subscriber

#3407512 26-Aug-2025 10:42

The power price issue isn't caused by the smelter. It's caused by the fact the government partially privatised the gentailers but then never used their nominal controlling interest to force them to run the network in the maximum public interest rather than for maximum profits. There are gigawatts of already consented renewables that were never built - just one reason why the NAFT government's renewables policy ("make consent easier") is a total failure - which is perfect for profit maximisation. By not building it you restrict supply, but by threatening to start building it on a moment's notice, you also suppress potential competitors whose business case can be cut off at the knees because you've got several years head start.

It may have been a National government that kicked off asset sales but successive governments since are all responsible for not managing it.

iPad Pro 11" + iPhone 15 Pro Max + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.

networkn

Networkn
32868 posts

Uber Geek
+1 received by user: 15458

ID Verified

Trusted

Lifetime subscriber

#3407514 26-Aug-2025 10:46

sir1963:

Just like NZ banks were sold, I see Anchor etc has been sold to a French company.

Piks peanut butter has also been sold.

Yet more profits going overseas.

Why is it that NZ companies get to a certain stage, then they get sold to an overseas group ?

Banks
Rocket Lab
Kathmandu
Weta workshops
F&P

etc etc etc

HOW are we meant to become more prosperous as a nation when we give away our assets ?
And yes I mean give away, those same companies if in the USA would have been bought for 10-100 times the price.

Well, for a start, they aren't our assets, they are privately held companies on the whole, and that means, that unless there is a NZ business willing to invest or buy them for the same amount of money, this trend will continue. It's not really surprising.

johno1234

3354 posts

Uber Geek
+1 received by user: 2843

#3407515 26-Aug-2025 10:50

mudguard:

sir1963:

And THEN we allow a foreign company to buy NZ electricity on the cheap for Bluff while killing off value added exports in paper and wood products because electricity is too expensive.
The profits from Bluff went overseas, the profits from paper etc stayed here in NZ.

The problem with the smelter argument is that it likely would not exist without foreign ownership.

We could shut it, connect to the grid and enjoy cheaper electricity. But presumably it would accelerate Invercargill's decline. I assume if we increased the price too high it would simply shut.

Getting power from such a remote location to the consumers would be quite lossy too... Need to find a good local use. The world's largest data centre and AI farm?

trig42

5889 posts

Uber Geek
+1 received by user: 2094

ID Verified

#3407531 26-Aug-2025 12:00

Dingbatt:

I can’t remember the last time I bought Anchor or Mainland branded dairy products. Mainly because I am unwilling to pay a premium over house brand versions of the identical product. Having worked in the dairy industry (albeit last century) the only difference is the packaging.

On the whole I agree with you,

but - there is not other 'off-brand' cheese on the market as good as Mainland Tasty (Kapiti has a 'tasty/sharp cheddar' that is exactly the same as Mainland's vintage cheddar).
Other Tasty cheeses are basically a mild cheese.

1 | 2 | 3 | 4 | 5 | 6