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Fonterra focuses on innovation and localization to capture growth in China

By Wang Zhuoqiong | chinadaily.com.cn | Updated: 2024-11-07 14:49
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Fonterra is focusing on innovation, sustainability, and a local presence to meet the evolving demands of Chinese consumers. [Photo provided to chinadaily.com.cn]

Fonterra is focusing on innovation, sustainability and a local presence to meet the evolving demands of Chinese consumers said its visiting executive at the CIIE.

CEO Miles Hurrell said the company is aligning its products with China's rapidly changing consumer preferences, including a commitment to localize products, boosting nutritional options for mid-aged and elderly consumers and tapping into emerging markets.

"In this market, we see the rate of change and innovation far out-places anywhere else in the world," Hurrell said.

"Make sure that the forefront of innovation for us is something quite important."

He said that an aging population is driving demand for health-focused dairy and nutrition products, as Chinese consumers increasingly recognize the importance of protein and nutrition.

Fonterra CEO Miles Hurrell. [Photo provided to chinadaily.com.cn]

Hurrell sees significant growth potential in high-protein and functional dairy products that promote bone health and muscle retention—key areas for an aging Chinese population.

To propel innovation and local relevancy, the company has invested in its six application centers in China, including the recently opened in Wuhan, Hubei province this Sept, to develop nutritious dairy from New Zealand with the Chinese-styled cuisines.

Examples include new, locally inspired flavors such as crawfish-flavored cheese, reflecting Fonterra's adaptive approach to China's diverse culinary culture,

Hurrell said it is incremental to understand regional consumer trends, adding that his management team from New Zealand this week is meeting with local partners in cities like Yangzhou, Jiangsu province, to gather insights

"It's essential for us to have a presence here, rather than operating from across the world, to quickly respond to market changes," he said.

Hurrell said that it is a learning opportunity to have a presence in China.

"We're inspired by the pace of innovation here and are looking to replicate this approach in other global markets," he said.

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