Fonterra to expand presence in China with launch of infant milk formula
Fonterra, a New Zealand-based dairy co-operative, plans to introduce baby milk formula in China, wit…Fonterra, a New Zealand-based dairy co-operative, plans to introduce baby milk formula in China, with a pilot project already beginning in the city of Guangzhou.
The nationwide sale of Anmum-brand infant milk powder is expected to begin in 2014.
The baby formula will be launched in Shanghai and Chengdu, and then expanded to 70 other cities over three years, reports Bloomberg.
Fonterra will employ about 500 new people in 2014 and increase its workforce by over 50% with the expansion of its consumer and farm businesses in China.
Commenting on the expansion, Fonterra China and India units managing director Kelvin Wickham was quoted by Bloomberg as saying, "If you want to be a global dairy player, you have to be in China. The Chinese consumers are getting stronger and stronger, and they will define the standards for the world and expectations."
Fonterra is making attempts to come out of the damage that it sustained when its baby formula was found to be infected with botulism-causing bacteria in August this year.
The company was also imposed a fine of 4.5m yuan ($740,000) in August in China for violating anti-monopoly rules, and an investigation was initiated by the country's National Development and Reform Commission for over pricing its products.
