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Sri Lanka Trusts Anchor Brand

Sri Lanka 01.04.2025
Source: dairynews.today
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The article explores the significance of the Anchor brand in Sri Lanka, highlighting Fonterra's role and economic challenges amidst the civil conflict.
Sri Lanka Trusts Anchor Brand
Fonterra's Sri Lankan headquarters, the colour of milk, stands in stark contrast to the bustling and chaotic streets of Colombo. It is peculiar to see this Kiwi icon, familiar in lush Waikato, amidst Colombo's developing chaos. The Fonterra logo may not be widely recognized by Sri Lankans, but they are familiar with Fonterra's locally manufactured products under brands such as Anchor, Ratthi, Newdale, and Shape Up. These products use New Zealand milk powder supplemented with local milk, distributed through around 40,000 outlets.

The journey fr om Colombo Airport to Fonterra’s manufacturing site, lined with military presence due to the ongoing civil conflict, underscores the nation's struggles and the influence of the dairy industry. Fonterra is set to open a new $12.2 million culture food manufacturing plant in Colombo, symbolizing its intent to strengthen its foothold in a market it entered in 1975. By 2000, Fonterra had taken full control of the business.

 Despite political turmoil and civil unrest, with a significant portion of the national budget dedicated to the military, Sri Lanka's economy has grown at about six per cent annually. Essential commodities, including milk, have regulated prices, but food prices have surged by 60% whereas wages grew only 15%, complicating economic conditions.

 In 2005, a survey found that Anchor is one of Sri Lanka’s most trusted brands, contributing to 68% of Fonterra’s revenue in the country. Fonterra is focusing on expanding its value-added market segment despite challenges like the infamous Sanlu incident in China, wh ere milk was contaminated with melamine, leading to serious health issues.

 The average Sri Lankan drinks less milk annually compared to their regional counterparts, which points to a potential market expansion as the nation slowly rebuilds. As the conflict winds down and economic conditions improve, Fonterra is optimistic about future growth and consumer engagement efforts. They are training Sri Lankan housewives to be milk ambassadors to increase consumption, viewing milk as a fundamental dietary staple.

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