Business

New Zealand’s Fonterra enters Indian dairy market

Unveils Dreamery brand of products

Fonterra Future Dairy Pvt. Ltd., a joint venture between New Zealand’s dairy nutrition company Fonterra and Kishore Biyani’s Future Consumer, has entered the value-added dairy products market in India with its new brand Dreamery targeted at youth and urban families.

The Dreamery range, comprising dahi (curd), ultra-high temperature (UHT) toned milk, and chocolate and strawberry milkshakes will be available in markets across western India in the first phase, followed by the south and then the rest of India.

The company plans to have pan-India distribution in two years and targets 5% market share of value-added dairy products in five to seven years.

Currently, India’s organised dairy products market is estimated at ₹1 lakh crore, and value-added products constitute 20% of the segment.

The company’s products will be available at all modern retail stores well as general trade and with full backing of the Future Group in retail and logistics, the company plans to have a turnover of Rs 6000 crore in three years, top executives said.

Fonterra Future Dairy, which will be contract manufacturing the products in India under its strict guidance and 93 quality checks, plans to introduce a new product every quarter. Its products will be differentiated by quality and taste for which Fonterra is know for the world over.

“By combining Fonterra’s global dairy innovation, manufacturing and nutrition expertise with Future Consumer’s leadership in retail and distribution, our goal is to delight Indian consumers with high quality, nutritious and great tasting dairy products, which is what we call Dairy 2.0,” Sunil Sethi, chairman, Fonterra Future Dairy, and MD, Fonterra Brands Sri Lanka and the Indian Subcontinent said.

“We are bringing 130 years of dairying expertise and our world-leading food safety and quality standards to this partnership to ensure that consumers can trust our dairy,” he said, adding the Future Group provides access to 500 million customers who visit its stores.

“Fonterra has deep expertise in product development and we are working in close partnership with them to bring in our understanding of Indian consumer tastes, preferences and habits. The product range will reflect the aspirations of consumers and we are hopeful that the brand will win their trust and confidence,” said Kishore Biyani, vice-chairman, Future Consumer.

“Our first product range is focused on taking staple products and using our world-class innovation to give them a contemporary and relevant twist,” Ishmeet Singh, CEO, Fonterra Future Dairy said.

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Printable version | Jul 13, 2020 3:05:50 AM | https://www.thehindu.com/business/new-zealands-fonterra-enters-indian-dairy-market/article28159740.ece

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