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.
Millions of people would have been healthier if they had consumed milk rather than used milk substitutes, according to an article in The Washington Post.
The article says previous science quoted by US government agencies to warn people off whole milk, including butter, was wrong. That advice was simplistic and the notion that dairy products cause heart disease was incorrect, it says.
Fonterra chief technology officer Dr Jeremy Hill says this article will serve to support well known science about the benefits of dairy products. This is recognised by the McDonalds restaurant chain in the US, which this year returned butter to its menu and removed dairy substitutes.
"The vast majority of the population doesn't read scientific and nutrition journals; they read newspapers either online or in print. [Papers] like The Washington Post get picked up broadly and are important in that respect. It's a way of popularising science in a way consumers can understand. The article, written from a perspective of a layperson, makes it's quite understandable."
Hill says the most important aspect of the science, and its publication, is that it removes barriers to dairy products in the minds of consumers. Dairy is recognised as providing a lot of valuable nutrients, he says. It's taken a long time for the science to become solid enough to change opinion.
"The science has been there for a long time but it's now gained so much momentum that it's changing policies and ultimately it will change consumer purchase decisions. From a sensory perspective milkfat is fantastic: its creaminess is desirable and the nutrition that comes with it makes it a winner. Who would have thought McDonalds in the US would completely change over to butter from substitutes?"
Hill says publicity on the diets of elite sports people will also help cause a shift towards greater use of dairy products. Many key influencers are helping change public opinion in favour of dairy products.
"Celebrity bloggers have become important in this respect -- rock and movie stars and other individuals who influence public opinion; as they adopt change they will drive this even further. But ultimately we need the right nutrition policies and advice from government channels, medical and nutritional advisors.
"Inappropriate barriers to consumer choices on nutrition" must be removed and the "support of key decision makers" gained, Hill says. "That means using a raft of formal and informal channels to influence consumers."
Hill says Fonterra has worked with many researchers and scientists publishing on the benefits of dairy products. The co-op will keep aligning its marketing strategies with this research.
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