China Food

The New Zealand dairy giant revealed these key information during the fourth Expo


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sustainability, aging, exercise and fitness, positive nutrition, immune health… Have become the propositions that can not be ignored in the dairy industry
 
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Text: Hailey   

Source: foodaily daily food (ID: foodaily)

 
Double eleven welfare

“It’s hard to raise an orphan.” Yi Qu, a public walker. “Together with President Xi Jinping,” building an open world economy. ” China has a population of more than 1.4 billion and a middle-income group of more than 400 million. The huge market demand not only promotes the transformation of the domestic economic development model, but also provides rare development opportunities for countries all over the world.

 

This year, 58 countries and 3 international organizations participated in the national exhibition, and nearly 3000 exhibitors from 127 countries and regions appeared in the enterprise exhibition. This open stage focusing on the global vision is not only an important window for international enterprises to expand their “circle of friends”, but also a focal point for gathering the world’s first exhibition of new products and technologies to attract domestic consumption ­ Unique show.

 

On November 6, Fonterra, a New Zealand dairy giant, opened the exhibition hall of the Expo. Meanwhile, Cynthia, the director of the exclusive interview program of foodaily, had the honor to interview Mr. Zhou Dehan, chief executive of Fonterra group in Greater China, and conducted in-depth interviews and exchanges on the theme, new trends and key strategies of enterprise development of the Expo. Next, foodaily went into the Expo x Hengtian with you The story of nature.

For the fourth time,

Fonterra puts forward the proposition of “sustainability”

Sustainable development is the key word for Fonterra to enter the Expo this year.

Respond to the call of the era of “low-carbon development” and transfer green experience to China

 

A big background is that from the proposal of the “double carbon” goal to the recent official launch of the 2030 carbon peak action plan, China’s pace of promoting green transformation is accelerating, “low-carbon development and green recovery” has also become an important theme throughout this Expo.

 

At the human level, environmental protection, sustainability and earth friendliness have also become the issues of the times that more and more Chinese consumers pay close attention to. According to Mintel gnpd data, 46% of Chinese consumers will pay attention to the carbon emission statement of products when buying food and beverages.

 

The strong signal released by “sustainable development” has given many overseas exhibitors, including Fonterra, determination and confidence to provide innovative experience, technologies, products and solutions for green and low-carbon development to the Chinese market.

 

Leading the green development of dairy industry has long been engraved into the bone and blood of sustainable DNA

 

Sustainable development is one of the core strategies of Fonterra’s enterprise development, and it is also a green gene engraved in the blood of this New Zealand dairy giant.

 

Fonterra is backed by New Zealand, which is one of the most famous milk sources in the world. Since the 1880s, New Zealand’s dairy products have been exported overseas for the first time. This year, more than 100 years later, New Zealand has a pivotal voice in the world dairy industry, and the annual dairy product trading volume accounts for one third of the world.

 

New Zealand dairy products have been prosperous for a hundred years, which not only benefits from the unique animal husbandry environmental resources, but also depends on the government’s awareness and construction of sustainable development of the stable climate and healthy ecosystem of the land on which farmers depend.

 

 

New Zealand is one of the few countries that have written the zero emission target into law. Its dairy farmers have the lowest carbon footprint in the world in the same industry, 70% lower than the global average and 46% lower than other major milk producing areas.

 

As the largest company in New Zealand and the world’s largest exporter of dairy products, Fonterra has long regarded sustainable development as an important proposition for enterprises. In the global new decade strategy announced by Fonterra not long ago, Fonterra defined “becoming a leader in sustainable development” It plans to invest NZ $1 billion in sustainable development in the next decade and achieve zero carbon emissions by 2050.

 

“Sustainability” has been on the way from pasture to table

 

President Zhou of Fonterra also revealed some achievements and ideas that can be used for reference in the sustainable development of Fonterra. From pasture to supply chain to market to consumers, Fonterra considers how to maintain environmental health from the overall perspective of the whole ecological link:

 

•   In Fonterra New Zealand pasture, adhere to the grass feeding and stocking mode, improve fresh water resources and build a healthy farm ecosystem;

•   Increase investment in R & D and find technologies and solutions to reduce greenhouse gas emissions such as methane and nitrous oxide;

•   In the manufacturing port, gradually turn to renewable energy and reduce carbon dioxide emissions;

•   Redesign the operation system, such as improving the efficiency of milk collection and distribution network and optimizing the fleet;

•   In terms of packaging, it is planned to make all packaging reusable, recyclable or degradable globally by 2025;

……

 

Not only environmental protection, but also enterprises, people, animals, natural resources and business models. Fonterra has a deeper understanding and exploration in more dimensions on the road of sustainable development.

 

In the Greater China market, President Zhou also mentioned that Fonterra has increased its practice in sustainability. For example, in cooperation with China Environmental Protection Foundation, it has established China’s first environmental protection fund specifically for the baking industry. It has promoted sustainable packaging materials in 55 leading baking chain brands and major stores across the country to provide customers with environmentally friendly cake boxes.

Entering the Expo is also a show field for sustainable Fonterra

As the theme of this year’s Fonterra Expo booth, sustainable development runs through many important activities of Fonterra. At the opening ceremony, Fonterra, together with the upstream enterprise Xiamen Jianfa and the recycling organization Shanghai ruisco Environmental Protection Technology Co., Ltd. and the downstream baking customer Qianji, jointly launched a carton recycling activity to encourage customers in the baking industry to recycle the waste packaging cartons, start from bit by bit and gradually improve the environmental awareness of the whole industry.

During the Expo, Fonterra also signed the public welfare project of “the sixth Anja cream cake – Anxin ingredients, double care” with China Environmental Protection Foundation, and jointly advocated the combination of low-carbon environmental protection actions and the use of low-carbon ingredients to provide consumers with more low-carbon baking products.

Grass fed milk took the lead, and ten new products appeared collectively,

What important signals have been released from the dairy industry?

 

While vigorously promoting the concept of sustainable development, new products are still one of the biggest highlights on Fonterra’s booth. The 10 new products brought by Fonterra come from its full line of business segments, which fully meet the consumer groups of all ages’ pursuit of higher dairy nutrition and health.

These ten new products include ANGA imported fresh milk from Asia for the first time, Kapiti cabetti special cheese for the first time in the Chinese market, ANGA high protein and high calcium milk, ANGA 4 fruit and 3 vegetable probiotic milk powder, ANGA 3 heavy protein nutritional milk powder, ANGA skimmed milk powder canned, Anyi evergreen formula and Anman children’s formula released through all channels Anjia Zhiyi masurila cheese, Anjia flake lactic acid butter.


As a “senior old gun” running through both ends of BC in China’s dairy industry for decades, what important signals have been released by the collective appearance of ten new products in the dairy industry?

Fresh grass feeding, or will drive the next round of high-end milk outbreak?

 

As early as 2016, whole foods regarded “grass feeding” as a new dairy consumption trend – “grass feeding” will become the next popular health concept after “organic”.

 

The natural grass feeding and stocking mode is more in line with the nature of dairy cows. Grass fed dairy cows spend a lot of time walking freely on shuimeicaofeng pasture in their life. They have high quality of life, stronger physique, are not prone to disease, and have a lower probability of containing antibiotics and hormones. In addition to being more friendly to animals and the environment, grass fed milk is also more nutritious. New scientific research has confirmed that grass fed milk contains more omega-3 fatty acids, conjugated linoleic acid, calcium and antioxidants (tocopherol is 50% higher than ordinary milk); β- Carotene is four times that of ordinary milk), and the ratio of omega-6 to omega-3 fatty acids remains at the best 1:1 for human body, while that of conventional whole milk is 6:1.

 

 

In the Chinese market, high-end has become a strong engine for the development of China’s dairy industry. Especially with the improvement of public awareness of health after the epidemic, consumers’ demand for high-end milk with high safety, high nutrition and high quality has further emerged. Grass fed milk with better quality in all aspects is expected to lead a new trend.

 

With insight into this demand change, Fonterra also brought high-end grass fed fresh milk from New Zealand to the Chinese market this time. According to President Zhou, Fonterra spends more than 350 days a year on the grassland, more than anywhere in the world. Moreover, New Zealand’s superior geographical environment makes the grass eaten by cows grow more abundant. Therefore, the milk produced is excellent in terms of taste and nutrition.

 

In order to make Chinese consumers feel the freshness of grass feed, Fonterra has made a lot of efforts in this new fresh milk product launched in Asia: first, 72 degree pasteurization process is adopted to retain a variety of active nutrients such as immunoglobulin; The special shading bottle packaging prevents the milk from contacting the light source to further lock the freshness and quality; Cross border air transportation from New Zealand pasture and cross-border logistics of the whole cold chain were put on shelves in 49 HEMA fresh food stores in Shanghai and Hangzhou.

 

Source: Fonterra

 

Native high protein, leading the new normal of liquid milk upgrading

 

During the Expo, foodaily also noticed that Fonterra released an Jia high protein and high calcium milk. This product uses 100% New Zealand grass fed high-quality milk source and adopts membrane filtration technology to achieve 5.7g high protein and 180mg high calcium content per 100ml. In addition, prebiotics are added to promote better intestinal absorption.

 

With the popularization of health awareness and the outbreak of functional demands such as sports and fitness, healthy lifestyle, children’s nutrition and immunity, the proposition of protein is becoming more and more attractive to ordinary consumers. According to the innova2020 health and nutrition survey data, 40% of Chinese consumers have increased their protein intake in the past 12 months, and 20% of Chinese consumers will use the source of high protein as a decision-making factor to buy cheese, milk and milk drinks or yogurt.

 

Under the overwhelming trend of high protein evolution, foodaily believes that primary nutrition is expected to become the next growth point of dairy products, and domestic dairy enterprises led by Mengniu have begun to overweight and layout this track. Firstly, the original nutrition without addition and concentrated through membrane filtration can maximize consumers’ trust and meet consumers’ health demands for high protein and high calcium dairy products. Secondly, it can obtain better taste. The convenience and super long shelf life of normal temperature milk packaging adopted by Anja enable this new concept nutritional milk drink to break the circle in a wider range.

 

Source: Fonterra

 

Healthy aging, a new blue ocean that can no longer be ignored

 

The seventh national census announced a new challenge to China, a country with a population of 1.4 billion: by 2020, the population aged 65 and over will reach 190 million, accounting for 13.50% of the total population. The China Development Foundation predicts that by 2050, China’s population aged 65 and over will reach 380 million, accounting for 30% of the population.

 

China’s population is aging, which means that the appeal of healthy aging can no longer be ignored. At the same time, it also indicates a huge imagination space for silver hair consumption.

 

Based on this judgment, Fonterra brought a new Anyi evergreen formula at the same time, added precious imported lactoferrin, matched with 100 million CFU / 100g imported active probiotics from New Zealand, and enriched high calcium and high protein  + 9 key vitamins, minerals and bone strengthening factors to protect the health of the middle-aged and elderly.

 

Source: Fonterra

 

Whether to B or to C,

Maintain the humility of service consumers

 

In September not long ago, Fonterra’s results for fiscal year 2021 showed that Fonterra’s revenue in fiscal year 2021 was nearly 100 billion, of which Fonterra Greater China contributed one third of the global performance, and the raw material business, catering business and consumer brand business maintained a good growth trend.

 

Asked about the reasons for growth, Zhou said that this was mainly due to China’s good control of COVID-19 and the smooth recovery of the overall economy, but also by the good development of China’s dairy industry and the increasing demand of consumers for dairy products and other nutritional products.

 

From foodaily’s point of view, the valuable ability of this global dairy giant lies in maintaining the humility of serving consumers, whether to B or to C, and delivering the value creation and experience upgrading based on high-quality New Zealand dairy products from top to bottom. From sustainable development strategy, to a series of product matrices closely focusing on market demand, to science and innovation in the field of dairy products

 

In the consumer brand business, in addition to product innovation for different ages and scenarios, on the marketing side, Fonterra brand department actively promotes the digital strategy, such as launching the first AI virtual anchor of global dairy enterprises, strengthening communication with target customer groups and providing more intimate services; During the Expo, the consumer brand team signed cooperation agreements with multiple partners including HEMA Xiansheng, China Southern Airlines, Jingdong, Qiaochu, douguo food and so on, and continued to deepen the coverage of new retail, interest e-commerce and other new channels.

 

In the dairy raw materials sector, as the largest business unit in Greater China, the team of Fonterra raw materials department continues to cultivate its innovation ability. By applying NZMP dairy raw materials to different categories of products such as substitute meals, candy, snacks and yogurt, it considers the market and consumption demands from the perspective of customers, and provides users with new ideas for the application of raw materials, Help customers achieve product innovation breakthrough from 0-1 with high value-added milk raw materials.

Among the many innovative products developed by the raw material business with customers this year, milk protein, cheese and some special milk raw materials such as probiotics and lactoferrin have been widely used to realize high value-added innovative products for customers, helping customers achieve product innovation breakthroughs and turn them into significant sales advantages.

In addition, Fonterra also launched a more flexible digital e-commerce platform to bring customers a 24 / 7 all-weather, fast and simple raw material procurement experience. President Zhou of Fonterra said that digitization is one of Fonterra’s important strategies. In order to better improve the interaction and experience with b-end customers, Fonterra launched mynzmp platform to promote digital services to B2B raw material sales. Moreover, based on its insight into consumer behavior, Fonterra will build a new digital ecology in all businesses around different ports such as new product development, supply chain digitization, marketing digitization and sales channel digitization.

In the catering business, Fonterra takes the consumer centered innovation and experience to the extreme. Based on the market demand, the catering service business department launched 272 innovative product application formulas in 2021, including new tea, baking, catering stores, etc.

 

By the end of July 2021, the products and services of Anjia catering service business had reached 385 cities and served more than 81000 outlets. Thanks to Fonterra’s local innovative application based on Chinese catering culture, catering service business has become one of Fonterra’s fastest growing businesses in Greater China, Its catering service team has become a strong support force for food and beverage products in the market. Even the most traditional Chinese hot-pot/" 22375 rel="nofollow" target="_self">hot pot and Chinese pastries have seen the figure of Anja cheese.

 

At the Expo, Fonterra’s chef team, which has been popular in the past few years, sat on the booth for the fourth consecutive year to show you the latest R & D products, including Matcha red core, jiazhifeng flavor, Yunding warm ginger sweet potato milk tea  、 Innovative applications of a variety of dairy products, including Yinli Pu’er milk covered tea and good luck red bean fancy milk.

 

At the end of the interview, foodaily asked Fonterra how to deal with the rapidly changing new consumer business ecology faced by the Chinese market. President Zhou gave two key words: first, innovation; Second, fast. Consumer demand is fleeting, market competition is fierce and turbulent, and customers need strong speed and rapid innovation. Fonterra, as a provider of customer service and consumer service at the same time, is well aware of this truth and began to improve its hard strength early: upgrade the innovation center and quickly capture market pain points and needs; Provide customers with 0-1 whole chain dairy innovation services to help new products and new brands launch into the market faster; Overweight digital strategy

 

I think this is the biggest enlightenment brought to us by this dairy giant.

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Double eleven welfare

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FBIC2022
Fbic222 global food and beverage Innovation Conference & the first Food Expo “new food era – brand ecology” will be held in Shanghai from May 31 to June 2, 2022. We invite you to witness it together. (click the picture to view the detailed introduction).

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