Fonterra aims to triple China's sales of Anchor-branded products in three years

Fonterra, the world's largest dairy nutrition firm based in New Zealand, aims to triple sales of its Anchor-branded products in China in the next three years, with more diversified offerings and better distribution.

"China is not just one of the largest markets for Fonterra, it is literally the largest," said Christina Zhu, President of Fonterra China.

"To expand our business in China, which is the fastest-growing market that contributes the biggest sales and revenue for Fonterra, is more than our strategic choice, it's our strategic requirement," Zhu said.

Anchor, Fonterra's flagship brand which was formed in 1886, has become the best-selling imported dairy line in China after being released on the market five years ago. Its brand awareness here only trailed Mengniu and Yili, and it became the bestseller in sectors like UHT milk and butter, according to a corporate statement.

More than half of Anchor's sales now come from online channels including its shops on Tmall.com and JD.com, while their products can also be found in over 13,000 brick-and-mortar stores in 223 cities across the nation.

"We may have come late but we came at the right time, when Chinese consumers are keener than ever for quality products," Zhu said.

As a sign of the importance of the Chinese market, Paul Washer, CFO of Fonterra Group, is now also acting as the CFO of Fonterra China.