Interview with Fonterra’s head of consumer goods in China: We are accelerating localization innovation in China

After entering the Chinese market for 10 years, Fonterra's consumer brand business under the Anchor brand has recently launched a new product of locally flavored cheese slices, hoping to drive the growth of the cheese category by expanding consumption scenarios. This series of products combines local Chinese flavors such as twelve-spice crayfish and green Sichuan pepper with imported cheese for the first time. 

"The birth of Anchor flavored cheese slices is the result of Fonterra China's team promoting the 'Local for local' strategy," said Bo Shuangyu, Vice President of Fonterra Greater China and head of the consumer brand business, to Foodinc. In the conversation, she also mentioned for the first time the strategic focus of Fonterra's consumer brand business in the Chinese market and the next development direction, emphasizing that "local innovation is the core strategy."

Bo Shuangyu

"Our localized innovation capability is reflected in the entire chain of product development." Bo Shuangyu stated that, taking the example of the new Anjia cheese slices, the Fonterra China team fully integrated the collaborative operation of domestic and international supply chains. The new product took only 25 weeks from initial concept formation to research and development to market launch, representing a significant acceleration compared to previous new product projects.

"We believe that the transition from 'drinking milk' to 'eating milk' will become an opportunity for growth in the dairy industry. Dairy companies should seize the trend of big health and create more new categories to meet the diverse and personalized needs of consumers," Bo Shuangyu stated.

In order to better adapt to and meet market demands, Fonterra is integrating local trend insights into the front end of product innovation and research and development, transforming New Zealand's grass-fed milk sources into products that better align with Chinese consumer habits. At the same time, it is actively exploring new channels and new scenarios.

She pointed out that a major strategic focus of Fonterra's consumer goods business in the Chinese market is to further expand the advantages and influence of New Zealand's grass-fed milk sources across all categories and multiple brands. In terms of categories, this includes liquid milk, milk powder, butter, and cheese, while the brands include Anchor, Anlene, and Mainland, among others.

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