Fonterra Opens New Innovation Centre in Shanghai

The new centre will focus on developing innovative dairy products and premium ingredients, specifically designed to meet the needs of local Chinese customers and consumers.

21 May 2012 --- Fonterra has announced the opening of a new innovation centre in Shanghai as part of the Co-operative's strategy to help feed China's rapidly growing appetite for top quality dairy nutrition.

The new centre will focus on developing innovative dairy products and premium ingredients, specifically designed to meet the needs of local Chinese customers and consumers.

Speaking at a formal launch ceremony, Fonterra CEO Theo Spierings said innovation underpins the Co-operative's entire global strategy and is critical to the integrated milk business being built in China.

"Demand for dairy nutrition expected to double by 2020 and the way people consume dairy will change. The opening of the state-of-the-art Shanghai Innovation Centre will help us build and grow beyond our current product and ingredient offerings and better meet the needs of local Chinese consumers and customers," Mr Spierings said.

"China is a significant priority in Fonterra's global strategy and our Innovation Centre will help us develop unique products and formats that suit the needs of the local population."

In particular Mr Spierings said the centre will focus on developing unique products and formats that tap into growing dairy consumption trends in China, by leveraging Fonterra's world class dairy protein research and development capability in New Zealand.

"As incomes rise across China, people are looking for nutrition that supports the health of their families, particularly young children, and dairy is one of the most nutritious foods there is. People's lives are also becoming busier, which means they are often looking for dairy products that they can eat on the go or use to make quick, easy and nutritious meals.

"Our new Shanghai Innovation Centre will mean we can create new products and premium ingredients, as well as further develop our existing range, to cater for changing lifestyles and growing consumer trends."

President, Fonterra China, Phillip Turner said that the new Shanghai Innovation Centre will also allow Fonterra to work more closely with major customers and the foodservice industry.

"As well as focusing on developing new products and ingredients, the centre will also carry out a number of product training courses for major customers, primarily focused on the Anchor dairy product line. Fonterra Advisory Chefs will help deepen customers' technical knowledge and develop innovative recipes to meet customers and consumers' needs."

Mr Turner added that the centre will employ local staff, who will be trained in product formulation, product production, operating procedures and food safety systems.

The innovation centre opening follows on from Fonterra's recent announcement that it will invest in two new large-scale dairy farms in Hebei Province, North East China.