High value dairy nutrition for India
Fonterra has announced a joint venture partnership with one of India’s largest consumer companies, Future Consumer Ltd, to produce a range of consumer and foodservice dairy products that will help meet the growing demand for high-quality dairy nutrition in India. Lukas Paravicini, Fonterra’s Chief Operating Officer Global Consumer and Foodservice, said the partnership, under the name Fonterra Future Dairy Partners, will enable Fonterra to establish a presence in India. “It will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing dairy industry. Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres – seven times the forecasted growth for China. “The partnership will be driven by growth through profitability. The initial stages of the partnership will focus on product development, and marketing with the right capital investment made during this period. The first consumer products will be launched by the middle of 2019, using both locally sourced milk and dairy products from New Zealand. “We will also use this time to settle in the partnership infrastructure, learn the market and prioritise geographies.” Mr Paravicini added that the joint venture comes at a time when the Indian dairy industry is transforming itself. “This has resulted in a big shift away from more traditional locally-based dairy businesses with limited product and brand differentiation, to a new era where more value-added and innovative dairy products are in high demand across the country,” he said. Fonterra MD Sri Lanka & Indian Subcontinent, Sunil Sethi, said that India was also witnessing the emergence of new FMCG organisations like Future Consumer which has a deep understanding of the Indian consumer, the experience of working with international partners, and a nationwide supply chain and retail […]