With global demand for dairy continuing to grow we need to make the most of the opportunities available to us. We are taking decisive steps to meet nutritional needs in some of the world’s most exciting growth markets and continue to drive better returns for our New Zealand farmer shareholders.
Our ambition is to build a globally relevant Co-op which makes a difference in the lives of 2 billion people by 2025
Our Strategy builds on our strengths and secures our growth for the next decade. We can’t do everything so have focused on the best opportunities for growth and where we can win.
Our group strategy aims to grow volumes and value by focusing on emerging markets and products that meet growing consumer demand for dairy nutrition. Our seven key strategic paths are:
1. Optimise New Zealand Milk+
New Zealand milk will always be our number one priority so we need to keep this business humming. We have projects underway to improve the way we use our manufacturing plant and supply chain assets in New Zealand and drive efficiencies.
We also want to access better information about demand so we can improve our product mix, and increase our focus on key products and markets, streamline our processes and increase the agility of our supply chain
2. Build And Grow Beyond Our Current Consumer Positions+
Together, our consumer businesses contribute around half our profit. We have great brands and strong positions in Australia and New Zealand, in Asia and Latin America. We want to sell more branded nutrition to consumers and grow sales volumes by pushing into new markets, with new products. We will protect and build on our leadership positions in Australia-New Zealand and invest in the key emerging markets in Asia, Latin America, the Middle East and North Africa.
3. Deliver On Foodservice Potential+
Fonterra's foodservice business operates in 50 countries and generates more than NZ$1.3 billion in sales per year. We specialise in chef led solutions for the foodservice sector across Australasia, Asia, China and the Middle East. We work with our customers to improve productivity in their kitchens, increase yield, reduce wastage, improve nutritional outcomes, enhance taste and texture, and deliver new menu options. With particular strengths in solutions for Bakery, Full Service Restaurants and Quick Service Restaurants, our extensive product range includes specialised bakery and culinary creams, natural and processed cheeses, cream cheese, milk, and a range of butters for bakery and hot kitchen applications.
4. Grow Our Anlene Business+
Our Anlene bone health brand is the leading high calcium milk in Asia, with more than 60% of the market. Bone health is just part of the picture – people need flexible joints and health muscles to stay mobile and active. With rapidly ageing populations in the west and China, we want to focus our innovation to extend the Anlene brand to support the consumer to live young.
5. Develop Leading Positions In Paediatrics And Maternal Nutrition+
Paediatric nutrition is the fastest growing dairy category in the world. We are already a leading manufacturer of ingredients for multinational infant nutrition companies. We want to build on this and also manufacture ingredients for leading Chinese infant nutrition companies, using our New Zealand milk and factories. We will also continue to extend our Anmum brand to provide trusted nutrition for mothers and children across South East Asia and within China. Our innovation teams will support this business with focused research on milks for brain development.
6. Selectively Invest In Milk Pools+
While New Zealand milk will always be number one, we will grow milk volumes by developing high quality milk supplies and integrating them more closely with our business. The major focus will be China where we will establish several dairy farming hubs and process that milk for Chinese consumers. While we don’t have to fully own the farms and factories, we will be hands-on with management control when it comes to quality and safety. This is how we run our integrated business using local milk in Australia and South America.
7. Align Our Business And Organisation to Enable the Strategy+
With our V3 Strategy giving us a clear direction, we are building a team with the right capability and tools backed with a robust capital structure to make it happen. At the heart of our focus is establishing world-class food safety and quality processes. We will also develop our people to support the business efficiently and effectively.