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Home / Hawkes Bay Today

Roger Moroney: Ice creams for sale, unfortunately

By Roger Moroney
Reporter·Hawkes Bay Today·
20 May, 2019 08:00 PM4 mins to read

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The Europeans get Tip Top.

The Europeans get Tip Top.

I'm always up for a scoop, although it seems one of our iconic scoopers has gone overseas.

I will embark on this literary rant with the simple excuse that I don't really understand the intricate nuts and bolts of corporate finance, except to note that some of the wages which those with the tallest chairs in the boardrooms get is verging on outrageous.

So I am a tad bewildered, and find it challenging to try and work out how a company with a monopoly in its nationwide field can make a huge loss.

And then try and patch up the ledgers and books by selling off what is effectively an iconic Kiwi brand.

The brand of Tip Top.

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Fonterra, which dominates the dairy landscape, sold Tip Top to a big European company last week for about $380 million ... which should sort most of the salary bill for the executives out there in Fairyland, I mean Fonterraland.

They've got the dairy industry pretty well under their wide umbrella yet the figures aren't flash.

I don't get it.

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But the Europeans get it ... they get Tip Top.

Which doesn't necessarily mean they will slash jobs and things out here, or change the flavours but there's every chance they'll make some alternative arrangements for some ingredients and that will cause the odd ripple effect.

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Although they're still going to buy the milk they need off Fonterra.

Oh yes, and there has also been the sale of a major Kiwi milk company to the Chinese recently for about $588m.

It's all going offshore.

Not the production processes ... but the cash it makes.

And the way the entrepreneurial and savvy Chinese businesses are going, further down the line they may not need our dairy produce either.

They're growing their own herds big-time.

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Hell's bells ... if they start growing their own big pine forests and start planting grapes we could really be in dire straits.

Then they'll start playing rugby and buy our best players ... crikey!

Yes, I have headed off on a tangent but tangents don't cost anything so that's okay.

Things just seem to be slipping out of our hands, and I don't get it.

So I wasn't too surprised when Cadbury, which is owned by British-based company Mondelez, decided to tweak the well established Roses chocolates and the changes in taste didn't exactly excite anyone.

And of course the Milo saga was a long and equally less flavoursome one ... they changed the recipe of this traditional Kiwi hot drink back in 2015.

All in the name of improving its health benefits.

So they took some vitamins out and put other ones in, and discarded the vanilla flavouring.

The reaction was immediate, and thousands of people voiced their anger at the resulting not-so-tasty drink that was once a staple in the pantry.

The websites were very brutal. People swore never to buy it again and used words like "disgusting" and "putrid" and "dreadful muck" when touching on the taste issue.

However, it has finally come to pass that the Milo crew have had another taste revamp, and taken it back to the taste it used to have.

Only took four years ... and one can only wonder at what the retail sale income was like during that time.

So, that's one slight glimmer of commercial hope on the horizon, although the way things are going we may eventually have to start paying more for the milk to put with it.

I'd ideally like to live in a world where things that were deemed to be just fine and dandy got left alone.

Why change stuff?

Roger Moroney
Roger Moroney

Imagine the furore if Tui changed the taste of its East India Pale Ale.

Not that I'd be alarmed as I only dabble with it occasionally, but the battalions of imbibers up and down the land who do would surely march on Parliament.

You don't mess with a winning formula.

And on that tasty note of Kiwidom you shouldn't sell off an iconic brand under your corporate wing to an overseas crew because somewhere along the way you forgot how to keep the books in the black.

And hey, the Government seems to have a bit of dosh lying around so shouldn't they step in to keep Kiwi things in Kiwi hands?

But then maybe they get their dosh from the world bank ... so maybe they own us anyway.

Roger Moroney is an award-winning journalist for Hawke's Bay Today and observer of the slightly off-centre.

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