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Fonterra aims at consumers of premium dairy products

DAIRY raw material provider Fonterra is looking to boost its consumer business in by focusing more on the higher margin branded consumer dairy products.

Christina Zhu, president of Fonterra China, said sales of its consumer brands as well as those for caterers and restaurants are picking up steadily thanks to local consumers' shifting toward western dining habits and picking of demand for premium bakery ingredients. 

"We're continuously looking for new ways and new channels to interact with consumers as the market evolves and upgrades," she told an interview with Shanghai Dairy.

“We hope to be consumer-targeted whenever they’re buying from our offline stores or through online shopping sites and to offer suitable and integrated purchasing channels for different types of consumers,” she added.

Fonterra launched a consumer experience center in the Super Brand Mall for its major consumer brand Anchor over the weekend to boost consumer experience and online-offline synergy. Currently about 50 percent of sales of Fonterra's consumer brands are brought by online sales channels.

The New Zealand headquartered cooperative said in the six months ended January this year China's foodservices and consumer businesses added 32.5 percent from a year ago to NZ$583 million (US$410 million), a much faster pace than its ingredients businesses. 

Since the end of last year, it has also been driving an integrated strategy between its farmland operations in China and consumer brands and to promote synergies between two business units to drive future growth.


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