“I’m really excited about what this market has to offer, and the medium to long-term prospects are still great,” Fonterra CEO Miles Hurrell said, adding that during his first visit to the China International Import Expo (CIIE), he saw “the positive nature of the Chinese economy.”
SHANGHAI, Nov. 9 (Xinhua) — Despite the global economic slowdown, China has numerous opportunities and huge potential for multinational companies like Fonterra to “continue to innovate with our customers,” Fonterra CEO Miles Hurrell has said.
“I’m really excited about what this market has to offer, and the medium to long-term prospects are still great,” Hurrell told Xinhua, adding that during his first visit to the China International Import Expo (CIIE), he saw “the positive nature of the Chinese economy.”
“You can feel it. You can feel that people are looking for something new. They’re looking for new, innovative products,” he said.
During its sixth consecutive year at the CIIE, the dairy giant has introduced seven new products, including two new products in China, ranging from probiotics and collagen to cheese, among an array of star dairy goods sourced from Fonterra’s healthy farming process.
“We see more and more customers and consumers (at the CIIE) talk about innovation, sustainability, and nutrition. How we bring those three together is something quite important,” the CEO added.
This photo taken on Nov. 3, 2023 shows the south square of the National Exhibition and Convention Center (Shanghai), the main venue for the 6th China International Import Expo (CIIE), in east China’s Shanghai. (Xinhua/Liu Ying)
Deeply rooted in the Chinese market over the past four decades, Fonterra views China as one of the most strategically important markets. Over the last five years, the dairy producer has debuted an array of star products and innovative applications at the CIIE.
Calling the expo a platform to share growth opportunities between China and the world, Hurrell said the CIIE helps Fonterra increase its brand reputation, strengthen local partnerships, and better connect with customers and other key stakeholders.
“We’ve seen growth in nutritional products. And health and wellness is a significant category that has huge upside where we’re excited,” he said, adding that sales of Fonterra’s cheese products have registered significant growth in the Chinese market.
“We’re really excited about the future in that (cheese) category… China continues to be an attractive destination and market for multinational companies,” he said.
The entrepreneur described innovation as “a common theme of Fonterra’s history and success in China.” This year’s CIIE witnessed a series of innovative products customized for Chinese customers and consumers.
“We are always looking at innovative ways of using dairy products in local cuisine,” he said, adding that Fonterra will “continue to strengthen core business with localized innovation in China,” i.e., to co-create new products and applications with local customers and partners.
In this regard, Hurrell highlighted “the real strong emergence of the local Chinese players” and the significance of cooperating with local partners in product launches.
“They really know what to do when it comes to food safety, (and food) quality really is world-class. Now the Chinese market is world-class,” he said.
“We take our products to (the Chinese) market both on our own and partnering with those really strong local players, because the Chinese players in this market are very strong and will continue to be long term,” the CEO added.
People walk past an electronic poster of the 6th China International Import Expo (CIIE) at the Hongqiao Railway Station in Shanghai, east China, Nov. 3, 2023. (Xinhua/Ding Ting)
Noting China’s substantial importance in the global supply chain and industrial chain, Hurrell said the country plays a critical role in both sourcing and production, adding that he is very confident in the prospects of the Chinese market.
“We look to continue to invest in this market to keep our teams close to customers, consumers, and the application centers, which take our products from New Zealand and get them in a way that’s close to what the customers and consumers in the Chinese market look for,” he said.
Earlier this year, Fonterra opened its fifth Fonterra Application Center (FAC) in Shenzhen. The company will keep investing in its locally-driven innovation capabilities and open more FACs in China, Hurrell said.
“Besides, we are looking to penetrate into lower-tier cities at an even faster pace,” he noted. “The CIIE also facilitates multinational companies like Fonterra to further tap into the vast and dynamic market of China.”
