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Fonterra Capitalizes on Growing 'Proteinification' Trend in the US

World 02.04.2024
Source: The DairyNews
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Fonterra, the New Zealand-based cooperative, is seizing opportunities in the burgeoning trend of 'proteinification' sweeping the United States, with its range of New Zealand-made protein products.
Fonterra Capitalizes on Growing 'Proteinification' Trend in the US
Source: freepik.com
Partnering with key players in the US dairy ingredient market, such as Premier Nutrition Company (PNC), Fonterra is making significant strides. PNC, renowned for its Premier Protein brand, which leads the US market in both ready-to-drink and convenient nutrition categories, saw impressive growth in 2023, with a 25% increase in net sales and a 32% expansion in distribution points.

Richard Allen, President of Fonterra's Atlantic region, highlights the US as an exceptional market for the cooperative, driven by consumer preferences shifting towards protein-rich options. He notes that this 'proteinfication' trend has permeated all sections of American grocery stores, creating demand for protein-infused products beyond traditional health aisles.

Dairy protein ingredients find their way into various popular categories in the US, including ready-to-drink beverages, protein powders, and snacks. Fonterra supplies ingredients across these segments, with particular emphasis on the rapidly growing high-protein snack bar category, which reached a retail value of US$2.8 billion last year.

Allen emphasizes Fonterra's strategic positioning to meet evolving market needs, citing the company's commitment to delivering high-protein solutions with functional benefits, sensory appeal, and environmental sustainability. Leveraging its farmers' efforts, Fonterra aims to be recognized as a leading sustainable dairy source globally.

Investments in research and development have enabled Fonterra to stay ahead in innovation, securing partnerships with major multinational food companies. Allen notes the evolution of the protein market from niche athlete-focused products to mainstream everyday applications, particularly in healthy snacking and indulgence categories.

Highlighting New Zealand's prowess in manufacturing high-quality protein products, Allen emphasizes the importance of maintaining both taste and nutritional value. He underlines Fonterra's contributions to enhancing product palatability, ensuring consumers no longer have to compromise taste for nutrition.

Fonterra's Atlantic region, encompassing the Americas and Europe, has seen robust growth, driven by Fonterra's strategic pillars of New Zealand milk, sustainability, and innovation. Allen remains optimistic about the company's future prospects, buoyed by the resilience of the US economy and sustained demand for value-added dairy ingredients.
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