Its global consumer and food service chief operating officer Lukas Paravicini said there is a positive opportunity for increased dairy consumption in the Malaysia market.
“Based on per capita dairy consumption rate here, there is still a lot of room for growth.
“In Malaysia, our brands such as Anlene, Anmum (Maternal, Lacta and Essential), Fernleaf, Calciyum and Anchor are very well-recognised in the market. Our business is significant here and the opportunity is very big.
“We believe that Malaysia will remain the key driver for our growth expansion in the Asean market, as evident by the investments that we continue to make in the country,” Paravicini told NST Business in an interview recently.
Compared with other developing countries in which Fonterra has presence, Malaysians consume less dairy per person.
Last year, Malaysians consumed less than 48 litres of dairy per person per year — compared with 61 litres for Singaporeans and 272 litres for New Zealanders.
In May, Fonterra Brands Malaysia reopened its milk powder manufacturing plant, Susumas, following a RM20 million upgrade, to further boost its role as a manufacturing hub in Malaysia and the Asean region.
The upgrade boosts manufacturing capacity and allows Fonterra to blend and pack around 30,000 tonnes of milk powder products a year, putting the company in a strong position to meet the growing demand for dairy nutrition in Malaysia.
Paravicini also said that there are rising consumer trends, such as westernisation of diets, urbanisation and rising incomes, that are opening new areas of growth and opportunities for Fonterra.
He said two such opportunities are the rise of out-of-home dining and in-home dining.
Currently, the out-of-home dining spend per capita in emerging markets like Malaysia is only at one-tenth of developed markets and this is one opportunity Fonterra is focused on growing.
“While out-of-home dining is a growing global trend, we are also seeing a huge rise in the trend of in-home dining in Malaysia.”
Meanwhile, Paravicini said the global consumer and food service business had targeted to shift an additional 400 million liquid milk equivalents into higher returning products for its financial year ended last month, which is yet to be disclosed.
Source: New Straits Times
Link: https://www.nst.com.my/business/2017/08/267678/fonterra-more-room-growth