Fonterra has partnered with one of China’s leading food distributors to take Anchor products into dozens of cities across China, with the potential to reach hundreds of millions of consumers.
A deal signed at China’s International Imports Expo will see Xiamen C&D Co. Ltd take $2.5 billion of Foodservice products to China’s professional catering market over three years.
President of Fonterra Greater China Christina Zhu says China’s third and fourth tier cities present a huge opportunity for Fonterra as they’re home to more than 300 million people – roughly the entire population of the USA.
“Foodservice is already working alongside bakeries, pizzerias, restaurants and coffee shops in 100 cities across China and we hope to increase this to 130 cities by the end of this financial year.
“The new deal with Xiamen C&D targets the professional catering market, which is incorporating more dairy into traditional Chinese cuisine. Xiamen C&D will distribute Anchor’s entire foodservice range, which includes products such as butter sheets, cream cheese and IQF mozzarella.”
Foodservice is now the leading brand in China’s catering market with products sold directly to restaurants, through wholesalers and distributors.
At China’s International Imports Expo, Fonterra also signed an order for Anchor products worth $10.7 million with Bailian Group, one of China’s largest retail purchasers, and another order for $6.4 million with global supermarket chain, Carrefour. NZMP signed a $85.4 million memorandum of cooperation in procurement and distribution with companies including Shanghai Juneng Food Ingredients Co. Ltd and Zhejiang Business Group.
“The partnerships we signed at CIIE are part of our strategy to sell premium Fonterra dairy to more people online and in-store,” says Ms Zhu.