Food & Beverages

Fonterra Co-operative Group Ltd.

Company Profile Analysis

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Fonterra Co-operative Group Ltd. - Food & Beverages showcase

Year Founded & Workforce

2000-12-31

19,608 Employees

Industry

Food & Beverages

Services

F

Fonterra Co-operative Group Ltd. Overview

Company Headquarters: Auckland, New Zealand

Founded: 2001

Workforce: ~19,608

Company Working: Fonterra Co-operative Group Limited (Fonterra) is a manufacturer and distributor of dairy products including cheese, lactose, yogurt, butter, milk, milk powders, casein, whey protein, and various other dairy ingredients and products. The company is formed and managed by a group of dairy farmers in Aotearoa, New Zealand, and currently has a network of more than 20,000 dairy farmers & workers. The company has a clientele network spread across 130 countries in the world. Anchor, NZMP, Anmum, Anlene, Anchor Food Professionals, and Farm Source are the range of brands the company is distributing its products. They are a total of 48 manufacturing sites, with the majority of manufacturing sites, 28 located in New Zealand. The global operations are carried out with the help of around 40+ offices present across the regions. Annually, the company collects around 18,455 million liters of milk with major sourcing from New Zealand followed by Australia and the rest of the world.

Dairy Ingredients are sold under the brand New Zealand Milk Products (NZMP) and are presently owned by around 10,000 families involved in dairy farming. The brand’s reaching the global region with the help of its offices situated in 14 locations in compliment with a reselling network in North America, Europe, Australia, and New Zealand. NZMP sells dairy ingredients under the categories namely milk powder, protein, specialty, cheese, and dairy fats.

Strategy

Fonterra Group’s key strategy is the strong focus on its sustainability status marked by the implementation of the Farm Environment Plans that are specific to individual farms in 71% of its dairy farmers which was initially at only 53% in 2021. To reduce the environmental impact, the company has incorporated recyclable material in 89% of its offerings. In order to reduce the carbon footprint the company has initiated several steps including the use of Kowbucha, a fermentation that helps in reducing or eliminating the methane-producing organisms that are present in the ruminant’s digestive system. Another initiative is the use of Asparagopsis, a seaweed supplement that was developed by the company in collaboration with Sea Forest. The seaweed when included in the cattle’s feed helps in reducing the methane further. These sustainable initiatives help in capitalizing on the growing demand for environment-friendly ingredients in the food & beverage industry

Further, the company’s constant participation in events including Food Additives and Ingredients Exhibition (FIC 2023), Snaxpo 2023, Gulfood 2023, Virtual Dairy Summit – APAC 2022, Probiota Americas 2022, Vitafoods 2022, Dairy Innovation Summit 2022, FI Europe 2021 online event, etc. which aids in reaching a new set of client and also helps in better product marketing across the regions. In addition, the company sponsors various technical events related to the dairy industry, for instance, the company has sponsored the Yogurt & Cultured Innovation Conference which helps in showcasing the product portfolio to the food & beverage manufacturers.

Company Snapshot

$20,282M

Revenue

19,608

Employees

2000-12-31

Founded

Auckland, New Zealand

Headquarters

SWOT Analysis

Strengths

  • Diversified geographic presence
  • Strong market position
  • One of the world's largest dairy exporters
  • Wide range of dairy products
  • Strong distribution network
  • Investment in sustainable practices
  • Well-established milk sourcing that helps in managing an uninterrupted supply of high-quality raw milk for processing
  • Strong hold of around 230 patents under 25 patent families
  • Strategic and diversified talent pool management in the key positions helps in better management of the company

Weaknesses

  • Lack of scale
  • Quality issue leading to suspension of operations and negative publicity
  • Dependence on milk prices
  • Limited presence in some regions
  • Challenges with supply chain management and quality control
  • Less regional diversification evident by the revenue generated from the rest of the world which accounts for only 21% of the total revenue of the company
  • The company’s partner Beingmate in China has faced allegations regarding the infant formula product for containing additives and product recalls have impacted the company’s image negatively

Opportunities

  • Strengthening presence in Australia
  • Growing global food service business
  • Opening of a dairy distribution center in Brazil
  • Expansion into emerging markets
  • Growth of organic and plant-based products
  • Investment in new technologies and innovations
  • Entering strategic partnership with Gujarat Cooperative Milk Marketing Federation Limited (Amul), a large-scale co-operative based dairy processor in India to co-create and launch innovative dairy ingredients
  • Strengthen its position further in the Europe market by launch of specialized dairy ingredients that cater to sports performance nutrition market

Threats

  • Outbreak of animal diseases
  • Government regulations
  • Competition from other dairy companies and alternative products
  • Fluctuations in milk prices
  • Regulatory changes and trade barriers
  • The economic crisis in Sri Lanka is expected to pose challenge for the company’s financial prospects as the country is one of the major target market of Fonterra
  • Fluctuation in inflationary pressures

Key Developments

DateApproachDevelopment
June-2022PartnershipThe strategic agreement between the New Zealand Exchange (NZX) and the European Energy Exchange (EEX) to jointly acquire an interest in Global Dairy Trade (GDT) with the Co-op has been finalised, according to Fonterra.
Nov-2021CollaborationA groundbreaking dairy science collaboration between Fonterra and VitaKey Inc. has been unveiled in an effort to maximise the potential of Fonterra's probiotic strains.
November 2022Product LaunchFonterra Group launched lactoferrin under the SureStart brand of NZMP. Lactoferrin is a whey protein that has a characteristic ability to bind iron which is most widely used in infant formula preparations.
June 2022Product LaunchNZMP launched a functional whey protein concentrate under the brand name Pro-Optima in collaboration with Three Mile Canyon and Tillamook. The company claims it as the novel functional WPC.
Sepetember 2020ExpansionThe company’s Fonterra and the Anchor Centre for Certification have opened their debut innovation center in China with an aim to innovate products that cater to the needs of the Chinese population. The center has an analysis and testing facility along with research & development provisions.

Product Offering

  • Fonterra Co-operative Group Ltd.
    • Functional Beverages
    • Milk Protein
    • Dairy Ingredients Market

Financial Performance

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About the Author

Wantstats Research Team

Wantstats' research desk profiles Fonterra Co-operative Group Ltd. as part of our ongoing coverage of the Food & Beverages sector, drawing on public company data, filings, and market intelligence.

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Noah Malgeri
Noah Malgeri

Co-Founder, Mojave Rail Fabrication Limited

This is really good guys. Excellent work on a tight deadline. I will continue to use you going forward and recommend you to others. Nice job.
Michael Robert

Manager, JavolVision

Thanks, I am so happy that we worked together. Maybe we still can work together in the future.
Joseph Aguayo
Joseph Aguayo

Sales Operations & Pricing Manager, Intel

Thanks. It's been a pleasure working with you, please use me as reference with any other Intel employees.
Bong Lau

Sales Leader, Bamberg

We bought your "2025 report" in 2020. Everything is fine and very good.
Peter Groot Koerkamp
Peter Groot Koerkamp

Account and Business Manager, EFS-Holland BV

Thanks for sending the report it gives us a good global view of the Betaïne market.
Younghwan Choi
Younghwan Choi

Senior Retail Manager, LG Chem

We found the report very insightful! we found your research firm very helpful. I'm sending this email to secure our future business.
Mark Irwin

Management Consultant, Level 21

I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.
Rob Kooiker

Group Product Manager HVAC & Fire Protection GMA, Rockwool

I have been reading the first document or the study, the Global HVAC and FP market report 2021 till 2026. Must say, good info! I have not gone in depth at all parts, but got a good indication of the data inside!
Jason Lee

R&D Director, Seojin

Thanks for your great support. Appreciate it. Well received report. It helps us to understand market well. We're planning other area of survey in the future, let's keep in touch.
Akif Moroglu

Strategy & Business Development Director, Dogan Holding

We got the report in time, we really thank you for your support in this process. I also thank to all of your team as they did a great job.

Fonterra Co-operative Group Ltd.

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