Fonterra Expands Presence in China, Targeting Second- and Third-Tier Cities
Source: The DairyNews
Fonterra, New Zealand's leading dairy giant, is set to broaden its footprint in China by extending its food service business to more second- and third-tier cities. The expansion strategy involves substantial investments in innovation, continuous menu development, and a focus on enhancing offerings in Chinese cuisine.
Teh-han Chow, Fonterra's Greater China Chief Executive, highlighted the success the company has achieved in China, emphasizing its significance as one of Fonterra's most crucial strategic markets. Owned by New Zealand farmers, Fonterra has leveraged the strong bilateral relationship between New Zealand and China to drive substantial business growth. Collaboration with local customers in nutrition, innovation, and sustainability has been instrumental in Fonterra's success in the region.
Chow emphasized the alignment between Fonterra's priorities and those of the Chinese government, particularly in nutritional targets for dairy consumption and emissions reduction goals. Despite the challenges posed by the COVID-19 pandemic, the China market is displaying robust signs of recovery. Fonterra anticipates continued growth in dairy consumption in China and aims to capitalize on this trend by combining high-quality New Zealand dairy products with Chinese consumer preferences to introduce innovative products.
As part of its commitment to the Chinese market, Fonterra inaugurated its fifth Fonterra Application Center in Shenzhen in 2023. Additionally, the company recently upgraded its application centers in Shanghai and Beijing, reinforcing its dedication to meeting the evolving needs of Chinese consumers and staying at the forefront of the dairy industry in the region.
Chow emphasized the alignment between Fonterra's priorities and those of the Chinese government, particularly in nutritional targets for dairy consumption and emissions reduction goals. Despite the challenges posed by the COVID-19 pandemic, the China market is displaying robust signs of recovery. Fonterra anticipates continued growth in dairy consumption in China and aims to capitalize on this trend by combining high-quality New Zealand dairy products with Chinese consumer preferences to introduce innovative products.
As part of its commitment to the Chinese market, Fonterra inaugurated its fifth Fonterra Application Center in Shenzhen in 2023. Additionally, the company recently upgraded its application centers in Shanghai and Beijing, reinforcing its dedication to meeting the evolving needs of Chinese consumers and staying at the forefront of the dairy industry in the region.
