Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
Local consumers in Malaysia are enjoying the equivalent of 1.9 million glasses of Fonterra branded dairy products every day — and that number is growing.
Fonterra consumer branded and foodservice products, sold in Malaysia under the Anchor, Fernleaf, Anlene, Anmum, Mainland and CalciYum brands, come under the massive number. Fonterra also sells dairy ingredients to food and beverage manufacturers in the country.
Fonterra Brands Malaysia managing director Jose Miguel Porraz-Lando says Malaysians are consuming more dairy than ever before and Fonterra is well placed to meet this growing demand.
"Fonterra has been supplying high-quality dairy nutrition to Malaysians for generations and today we've got market leading brands across the dairy category. Anlene is the number one high calcium milk product in Malaysia, Anmum Materna is the leading maternal milk brand and we're market leaders across the foodservice category."
Porraz-Lando adds that Fonterra's two Malaysia-based manufacturing facilities have the capacity to process 10,000 metric tonnes of New Zealand dairy products each year.
"We make these New Zealand dairy ingredients into a range of consumer-branded products that are consumed locally in Malaysia and exported to markets across South East Asia and the Middle East.
"The region's fast-growing population is becoming increasingly wealthy driving dairy demand growth across the region. This presents an exciting opportunity for Fonterra and we're helping to capitalise on this opportunity through our Malaysia operations," says Porraz-Lando.
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