Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
The Fonterra Milk for Schools programme winds up at the end of this year.
The co-op says instead, it is boosting the KickStart Breakfast programme it provides alongside partners Sanitarium and the Ministry of Social Development.
The co-op is also joining forces with NZ Food Network to redirect Milk for School product into communities through food banks, charities and other partners.
Fonterra chief executive Miles Hurrell says, as a New Zealand farmer owned co-op, with employees spread right across regional New Zealand, Fonterra is part of many communities.
“We’ve taken a good look at what the country is facing into, particularly in the context of COVID-19, and asked if our current way of doing things is supporting the people who need it most.
“We can see there’s a need for us to expand our thinking and take a more holistic approach that reaches more people – which is why we’re making these changes,” says Hurrell.
There are already more than 1,000 schools in KickStart Breakfast.
Hurrell says one of the co-op’s immediate goals is to work with partners to have all decile 1 to 5 schools across the country in KickStart Breakfast - reaching another 200 schools – “where coming together over breakfast at the start of the school day really makes a difference”.
Fonterra believes it’s not just in schools where they can play a role.
“We saw this first-hand during lockdown earlier this year, when we redirected close to one million serves of Fonterra Milk for Schools. Coming together with NZ Food Network allows us to keep doing this, Hurrell says.
He says Fonterra loved being part of the Milk for Schools programme.
“We’ve got a lot of affection for Fonterra Milk for Schools, but we have to recognise through this refresh there’s a much more efficient, environmentally focused and impactful way to get milk to more kids each day.
“It will be an end of an era and we’re proud of what Fonterra Milk for Schools has achieved - but times have changed and so will we, to ensure we’re always doing our best for those who need it the most,” says Hurrell.
