Fonterra, the multinational milk processor, has announced that it has joined forces with the consumer goods firm Future Consumer, part of Future Group, to market dairy products in India.
The new venture, which is to be called Fonterra Future Dairy Partners, will market a range of products for both retail and foodservice channels that will “help meet the growing demand for high-quality dairy nutrition in India”, according to a company statement.
Commenting on the move, Lukas Paravicini, chief operating officer of Fonterra Global Consumer and Foodservice, said the move would enable Fonterra to build a presence in India.
“It will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing dairy industry. Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres – seven times the forecasted growth for China.
“The partnership will be driven by growth through profitability”, he said, adding: “The initial stages of the partnership will focus on product development, and marketing with the right capital investment made during this period. The first consumer products will be launched by the middle of 2019, using both locally sourced milk and dairy products from New Zealand”.
Kishore Biyani, group chief executive officer, Future Group, commented: “Consumption of milk and other dairy products in India are increasing and will continue to receive strong demand. With Fonterra, Future Consumer will enhance its food and FMCG portfolio and will offer a variety of dairy products which are high in demand and consumed daily”.