Battle for milk
OPINION: Fonterra may be on the verge of selling its consumer business in New Zealand, but the co-operative is not keen on giving any ground to its competitors in the country.
The facility opened last week and is based in the country's southern city of Shenzhen. It is equipped to design innovative solutions for the co-op's China customers.
"It's a huge milestone for Fonterra and Shenzhen is the perfect location for it," says Fonterra Greater China chief executive Teh-han Chow.
"Many of China's leading beverage customers are headquartered in Shenzhen where new ideas flourish due to the city's young population and innovative environment.
"We see great potential in combining Fonterra's high-quality dairy products with the rich flavours of Chinese beverages. This fusion is sure to create some exciting new products that will delight both consumers and industry players."
Consumer preferences in China are constantly changing. Health awareness has grown since Covid-19 which has increased dairy consumption. The government is also pushing for people to aim for a daily dairy intake of 300 to 500 grams.
"Our application centres allow as to help our customers to rapidly innovate to take advantage of the latest consumer trends," says Chow.
"Part of the success of our Foodservice business in China has been driven by the application centres which not only allow us to better support our customers but also better understand Chinese consumer preferences.
"The application centres boost our abilit to pick up on the latest trends in the food and beverage sector."
A total of 1,434 new kinds of non-alcoholic beverages were launched by key tea and beverage brands in China last year.
 |
|---|
|
Fonterra Greater China chief executive officer Teh-Han Chow at the launch. |
"The Shenzhen application centre provides a new platform to explore the diverse use of Fonterra products in beverages and provide innovative application solutions to meet the local needs of Chinese consumers,” says Chow.
The new application centre is also an important part of the co-op’s global R&D system.
Food technicians and chefs experienced in beverage production will be based at the application centre.
Their job will be to create an interactive and diverse experiential space for customers through product development seminars, demonstrations as well as live online tutorials.
Fonterra’s application centres are part of its strategy to bring the goodness of New Zealand milk to Chinese customers in innovative ways and continuing to partner with local Chinese companies to do so.
Fonterra recently completed digital upgrades of its two application centres located in Beijing and Shanghai.
While the Shenzhen application centre will be focused on beverage applications, it will also have bakery capacity. Likewise, the four other application centres have beverage application capacity.
