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.
The co-op has teamed up with the a2 Milk Company to launch Anchor a2 Milk; currently available in Pak ‘n Save and New World North Island stores, the product will be rolled out nationally by October.
Fonterra Brands New Zealand acting sales director Grant Watson says the co-op is “very confident” that Anchor a2 milk would do well.
“Firstly, we believe it will be helped by the strength of the a2 brand along with our distribution network through NZ,” Watson says.
“Secondly, looking to the success of A2 milk in Australia; that’s a lead indicator as to what could play out in NZ.”
a2 Milk is the number one premium brand fresh milk in Australia, with 10% of the total market share.
Watson says Anchor is set to give consumers more choice.
“We’re really pleased to bring another great tasting fresh milk option to Kiwi households. Anchor already has 10 varieties of milks and will continue catering to a variety of diets, ages and stages so that as many people as possible have the option to consume milk products,” says Watson.
Jayne Hrdlicka, managing director of a2 Milk Company is delighted to be entering into this partnership with Fonterra.
She says the company is pleased to be finally providing its own brand of a2 milk to New Zealanders for the first time, “especially given this is where our company was founded.”
While most cows carry both A1 and A2 proteins, Anchor’s a2 milk comes from herds that produce milk naturally free of the A1 protein.
Watson says Anchor’s a2 milk is sourced from one farm; more A2 milk farms will be developed as demand grows.
