Fonterra has expanded its presence in China, as the company has partnered with Alibaba’s Hema supermarket chain to release a new range of fresh milk, which will be available from all of Hema’s 14 stores in Shanghai and Suzhou.
The Daily Fresh milk range is packed in 750ml bottles, and utilises different packaging for each day of the week in order to “emphasise freshness.”
All of the milk used in the range is sourced directly from Fonterra’s dairy producers in Hebei province, and Fonterra will supply the retailer with three metric tonnes of the milk daily.
Fonterra also plans to increase production and supply in the future, in line with Hema’s expansion across China.
President of Fonterra Greater China Christina Zhu said: “Shoppers here in China are becoming increasingly sophisticated in terms of their tastes and preferences, which are being driven by rising household incomes.
“More than ever before, consumers are consciously seeking products that are fresh, nutritious and safe, and our new product for Hema caters to this.”
Zhu added: “No other multinational dairy company in China has a local milk pool to draw from, so we are in an advantageous position.
“This milestone with Hema is a sign of things to come and indicates that our push to shift more of our local milk into higher-yielding consumer and foodservice products is well-and-truly underway.”
Shoppers at Hema can use their mobile phones to purchase items as they travel around the store, and consumers within 3km of stores can order online and receive their goods in approximately 30 minutes.
The supermarket chain already stocks Fonterra’s Anchor UHT milk products, as well as cream, butter and cheese produced by the brand.
Hema Fresh CEO and Founder Hou Yi said: “This co-operation between two powerful companies is set to redefine the concept of fresh milk in the new retail era.
“As a global leader in the dairy industry, Fonterra is well-known for quality milk pools, world-class breeding techniques and advanced experience in food safety and quality, which matches well with what we advocate.”