Fonterra establishes beverage application centre in China

The facility opened April 25
calendar icon 1 May 2023
clock icon 2 minute read

Fonterra has established a fifth application centre in China but unlike the other four, the newest one is focused on beverage applications, according to a company press release.

The newest facility opened on Tuesday 25 April. It is based in China’s southern city of Shenzhen and is equipped to design innovative solutions for the Co-op’s China customers.

It’s a huge milestone for Fonterra and Shenzhen is the perfect location for it, said Fonterra Greater China CEO Teh-han Chow.

“Many of China’s leading beverage customers are headquartered in Shenzhen where new ideas flourish due to the city’s young population and innovative environment," he said.

“We see great potential in combining Fonterra's high-quality dairy products with the rich flavours of Chinese beverages. This fusion is sure to create some exciting new products that will delight both consumers and industry players alike," Chow added.

China is a highly competitive beverage market, with consumers constantly seeking the next best drink. Last year, 1,434 new kinds of non-alcoholic beverages were launched in China by key tea and beverage brands.

Businesses must adapt quickly to market trends and continuously create novel products that typically combine traditional tea ingredients, dairy and fruit products.

“The Shenzhen application centre provides a new platform to explore the diverse use of Fonterra products in beverages and provide innovative application solutions to meet the local needs of Chinese consumers,” said Chow.

“We must be more agile and continue to develop our capabilities to produce cutting-edge solutions that add value to our customers' businesses," Chow added.

“As a New Zealand company deeply rooted in China for 50 years, we want to play an active role in the industry, integrate ourselves into the local innovation ecosystem, and empower the high-quality development of the whole value chain.”

A team of technical experts and experienced chefs are stationed at the Shenzhen application centre. They help to create an interactive, experiential space for customers, through product development seminars, demonstrations, and virtual live teachings.

Fonterra's four other application centres are based in the cities of Shanghai, Beijing, Guangzhou and Chengdu.

While the Shenzhen application centre will be focused on beverage applications, it will also have bakery capacity. Likewise, the four other application centres have beverage application capacity.

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