Fonterra unveils new Shanghai innovation center
A staff works on innovative dairy ingredients at the Fonterra-ACC Shanghai Innovation Center.
New Zealand dairy cooperative Fonterra has unveiled the Fonterra-ACC Shanghai Innovation Center to tap growing demand for new food and beverage offerings in China.
“This allows us to stay close to consumers and to respond to the market more quickly,” said Fonterra China interim CEO Teh-Han Chow.
Some of the new offerings are also expected to debut at the third China International Import Expo in November.
“Innovation is our bloodline and there’s a clear request in China for novel taste and innovate products. We have to shorten the innovation cycle significantly to rapidly develop innovation,” said Fonterra China Chief Financial Officer Paul Washer.
In some cases, it can shorten the process from initial idea to commercial production to only several months, compared with several years before.
ACC, a certification and analysis test service provider, is capable of carrying out over 2,000 types of tests for nutritional elements and safety standards. The Fonterra team can get test and assessment results faster than before by working together in the innovation center.
A collaboration with ACC will cover categories like cream, yogurt, processed cheese, liquid dairy and milk powder.
Fonterra said its strategy is to build on the success of its food service, ingredients and consumer businesses in China and sell premium dairy to more people, online and in-store.
It’s also sharing innovations in China driven by local expertise with its global team to fuel its overall growth.
Fonterra Chairman John Monaghan said in a statement last month that after an initial shock due to COVID-19, dairy consumption in China is recovering, with more people spending on food.
Its existing application centers in Shanghai, Beijing, Guangzhou and Chengdu have helped it forge close ties with local food service customers like bakeries, cafes and tea shops.
