DAIRY FEATURE SHAKE-UP SETTLED 18 FEBRUARY 2018 Fonterra has launched a new fresh milk product in China in partnership with Hema Fresh, Alibaba’s innovative new retail concept which combines traditional bricks-and-mortar shopping with a digital experience. The new Daily Fresh milk range is now available in 750ml bottles at Hema’s 14 stores in Shanghai and Suzhou, sourced directly from Fonterra’s farm hub in Hebei province. The product boasts unique labels to match each day of the week in order to emphasise freshness, with stock being replenished overnight ready for each new day. Fonterra Greater China president Christina Zhu says initial volumes are currently around three metric tonnes daily, with plans to scaleup over time and expand with the retailer as it rapidly grows its footprint of stores across China. The new product meets growing domestic demand for higher-quality fresh products as part of the ‘premiumisation’ of China’s consumer categories. “Shoppers here in China are becoming increasingly sophisticated in terms of their tastes and preferences, which are being driven by rising household incomes,” Zhu says. “More than ever before, consumers are consciously seeking products that are fresh, nutritious and safe, and our new product for Hema caters to this.” More than 75% of China’s urban consumers will earn between $13,000 and $49,000 by 2022 - up from just 4% in the year 2000 - prompting a marked shift in consumer behaviour and purchasing power. Linked to this trend is the rise of Hema, which emerged on the scene in early 2016 and is a major signpost of China’s ‘new retail’ trend, which Alibaba founder Jack Ma coined as being the intersection of online and off-line shopping, logistics and data. At Hema, consumers can either shop in-store using their mobile phones to browse and purchase, or order online for a 30-minute delivery within a 3km radius. Hema then utilises the wealth of data it gathers to provide a tailored, personalised shopping experience for each customer. In addition to the brand new fresh milk range, Anchor UHT milk products and the Anchor Dairy Foods range of butter, cream and cheese items are sold through Hema. The retailer is also a foodservice customer, using Fonterra’s Anchor Food Professionals products in its in-store bakery. Hema Fresh chief executive and founder Hou Yi said he is excited by the strategic co-operation between the two companies. “This co-operation between two powerful companies is set to redefine the concept of fresh milk in the new retail era,” Hou says. “As a global leader in the dairy industry, Fonterra is wellknown for quality milk pools, world-class breeding techniques Westland Milk Products has completed its revitalisation of its executive leadership team with the appointment of Jeffrey Goodwin to the role of general manager – sales. Chief Executive Toni Brendish has announced the appointment, saying Goodwin’s experience in food and ingredients sales is global in scale, with a record of success in South East Asia, Japan, China and the United States. “His experience is in keeping with Westland’s strategy to differentiate the company and products, and form partnerships with key companies that can give Westland penetration into high-value market niches,” she says. “Using this new strategy, we expect to be announcing some significant new deals and we’ll be looking to Jeffrey to identify, capture and deliver on more of these types of sales,” Brendish says. Goodwin comes to Westland from his role as James Farrell & Co’s vice-president of global operations, a company that represents United States-based manufacturers in the export of their ingredients. Since September 2016, Brendish has restructured the leadership team at Westland, resulting in a new chief financial officer, chief operations officer and general manager in Shanghai. She also elevated a human resources officer to the executive leadership team and retained long-serving company secretary Mark Lockington. “This is the team that will drive Westland forward,” Brendish says. “We’ve already introduced efficiencies right across the board that are delivering more than $70 million in savings, giving us the confidence to predict a competitive pay-out to shareholders for this season, with very real prospects of sustaining that sort of return well into the future.” DAILY FRESH PUSHES INTO CHINA
FT-eMag-feb18
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