Friday, 09 June 2023 13:07

Fonterra's big move in nutrition science

Written by  Sudesh Kissun
Fonterra chief executive Miles Hurrell. Fonterra chief executive Miles Hurrell.

Fonterra is upping its game in nutrition science, announcing a new corporate ventures arm and a US$10 million investment in US biotech company Pendulum.

The corporate ventures arm - provisionally named Nutrition Science Solutions (NSS) – will operate as a standalone business within Fonterra with its own board and chief executive officer.

It will have access to the co-operative’s dairy science and innovation expertise, combined with the agility of a startup.

Chief executive Miles Hurrell says the business will incubate and scale a portfolio of disruptive ventures by developing solutions that combine science, nutrition, and technology to make a real impact on human health.

Hurrell says Fonterra is committed to staying at the forefront of nutrition innovation and creating new value streams for the co-op.

“When we released our long-term strategy in September 2021, we identified nutrition science solutions as an area with future growth potential.

“Nutrition science is a segment of the global health and wellness category that goes beyond everyday lifestyle and wellness products. Given our expertise in dairy science, we committed to exploring the potential for Fonterra to play more boldly in this space.”

NSS will seek out, partner with, and invest in global start-ups who will benefit from access to Fonterra’s dairy science expertise and understanding of the global market, while Fonterra will benefit from access to emerging technologies, advancements in science, and novel channels to market.

Fonterra’s chief innovation and brand officer Komal Mistry-Mehta will sit on the NSS board with another Fonterra-appointed director. The search for a CEO is underway.

As part of NSS's investment in Pendulum, Fonterra will get a minority shareholding, which Hurrell says hasn't been worked out yet.

The growth-stage San Francisco-based company specialises in targeting metabolic health through evidence-based microbiome solutions.

The partnership will see Pendulum and Fonterra establish a presence in global markets, co-develop and commercialise next generation microbiome products that are scientifically formulated to make measurable improvements to people’s health.

“This strategic partnership will enable Fonterra and Pendulum to leverage each other’s strengths – Fonterra’s innovation, manufacturing expertise and established leadership in global markets, together with Pendulum’s deep innovation, microbiome expertise and growing leadership in the US market,” says Hurrell.

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Featured

$52,500 fine for effluent mismanagement

A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.

Ospri brings Bovine TB testing in-house

The move to bring bovine TB testing in-house at Ospri officially started this month, as a team of 37 skilled and experienced technicians begin work with the disease eradication agency.

National

Machinery & Products

Fliegl offers effluent solutions

Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…

» Latest Print Issues Online

Milking It

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter