Fonterra’s consumer business, New Zealand Milk, is to be renamed Fonterra Brands.The change reflects that the company’s core business is brands and that it is backed by the strength of the Fonterra Co-operative Group.
Fonterra Brands Managing Director Sanjay Khosla says the timing is right for the move.
“The Fonterra name has been out there in the global market for nearly four years now, and over this time has established its credentials as a force in the market with a great deal of expertise in dairy.
“Our change of name associates our consumer brands more directly with this expertise and will be invaluable as we pursue our ‘Winning Through Brands’ strategy over the next three years.
“We are talking strength by association. Today, if you go into a supermarket anywhere in the world, you see many of the major consumer brands carrying the logos of the major companies that are behind them.
“By contrast, if one of our shareholders went into a supermarket today and wanted to buy Fonterra brands, they would be relying on their memory.
“Over time, as the Fonterra name and brand begins to appear on the packaging as an endorsement of our leading brands, such as ANLENE and MAINLAND, we will enhance our worldwide reputation and instil even more pride in the Fonterra name.”
The Fonterra endorsement branding will be progressively added to Fonterra Brands’ leading brands, with the addition of the Fonterra logo coinciding with the reprinting of packaging to maximise marketing efficiencies and contain costs.
Fonterra CEO Andrew Ferrier says the change also underlines the fact that Fonterra as a co-operative really does stand for “the best of both worlds”.
“Fonterra has a worldwide reputation as an ingredients producer and marketer. Now, with our consumer brands business renamed Fonterra Brands, we are also bringing our strengths in the consumer area to the fore and clearly linking them to the Fonterra name,” Andrew says.
The change also coincides with the initiative in the Capital Structure proposal for the business to have a separate balance sheet. This will further strengthen Fonterra Brands’ ability to continue operating at arm’s length from Fonterra Ingredients, protecting the integrity of that business’ relationships with its other major ingredients customers.