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 new products - like chilli and garlic brie, Anchor ghee and cheese snacking range - meet an increasing demand for products that offer both convenience and fuller flavours, reflecting broad lifestyle and taste trends.
Leveraging consumer insights, shopper behaviour, and quick-to-market capability, Fonterra Oceania says it's using innovation to add a little bit of luxury to the supermarket dairy shelf.
Fonterra Oceania director of marketing and innovation Renée Milkop-Kerr says it was important to constantly look for ways to innovate and improve products that help meet the changing needs and preferences of today's savvy consumers.
"Alongside convenience, there is a growing preference for fuller, richer flavours in dairy products. As palates evolve, people are looking for more indulgent taste experiences, whether through higher fat content in dairy or through more complex bold flavour profiles," Milkop-Kerr says.
Fonterra's new Mainland Special Reserve Chilli and Garlic Brie was launched in New Zealand addressing emerging flavour trends, especially during celebratory moments. Also in New Zealand, Anchor Double Cream was launched in time for the festive season and provides a richer, creamier, and more indulgent cream - tapping into the insight that people are looking for extra luxury when cooking and entertaining.
Fonterra Oceania says Australians and New Zealanders have demonstrated they love butter, but they frequently see it as the carrier of flavour rather than the flavour itself.
"Turning this belief around is the new Mainland Sweet Cinnamon Spreadable, available in Australia, which has shown that butter itself can be the flavour hero."
In New Zealand, Anchor Ghee was launched bringig high quality dairy to global cuisines - particularly for those who cook Indian and Sri Lankan dishes and love the high smoke point and slightly caramelised flavour compared to butter.
"Alongside convenience, there is a growing preference for fuller, richer flavour in dairy products.
"As palates evolve, people are looking for more indulgent taste experiences, whether through higher fat content in dairy or through more complex, bold flavour profiles," Fonterra Oceania says.
A new snacking range in Australia has been introduced under the Bega brand, leveraging 'Australia's most loved cheese' offering. This provides a healthier snacking option for many families and is perfect for the lunch box.
Two new Mainland natural cheese slice options were introduced in New Zealand, American Style Cheddar and Gouda, reflecting shopper preferences for convenience alongside flavour and quality.
Fonterra Oceania also launched Kapiti yoghurt singles in New Zealand, extending the range from the larger tub sizes to a snackable format, which introduced Kapiti to new shoppers.
Flavours include Succulent Summer Plum, Lush Lemo, Sweet Rhubarb and Vanilla, and the latest addition to the range, Fig and Manuka Honey, launched in April this year.
