Fonterra unveils upgraded application center in Shanghai

Visitors check out Fonterra products during the third China International Import Expo in Shanghai in November 2021. [Photo provided to China Daily]

New Zealand-based multinational dairy cooperative Fonterra Cooperative Group Ltd unveiled its upgraded Shanghai Fonterra Application Center on Thursday, with senior executives of the company describing the move as a show of the company's confidence in the Chinese market.

Fonterra CEO for China Teh-han Chow said the upgraded center will be crucial to the company's efforts to tap the huge consumption potential of the China market.

The facility, which will be focused on localization and innovation, will facilitate research and development of more tailor-made dairy products that meet the needs of China's catering and beverage market, as well as the creation of more trendy and innovative flavors, according to the company.

Chow added that the Shanghai Fonterra Application Center could bring more innovative products and application solutions that are aligned with the latest trends.

"The upgraded Shanghai Fonterra Application Center is a new milestone in our commitment to China's market, and will become another powerful engine to promote our development in the country," he said.

According to a report published by the China Hospitality Association and Xinhuanet, China's catering and beverage industry generated a combined revenue of 4.69 trillion yuan ($647 billion) in 2021, an 18.6 percent year-on-year surge.

Consultancy iiMedia Research has also projected that the market scale of the Chinese catering and beverage industry would reach 5.56 trillion yuan by 2025.

Meanwhile, the Chinese bakery market has in the past five years grown at a compound annual growth rate (CAGR) of 11 percent to exceed 280 billion yuan in 2021, and the figure is expected to surpass 300 billion yuan in 2022, according to a report by online food ordering and delivery service provider Meituan.

To explore the tremendous potential of the Chinese catering and bakery market, Fonterra hopes to share more premium quality dairies with its clients, partners, and consumers in China. The company will also continue to explore new products and applications through upgraded and innovative digital services, Chow added.

Established in 2014, the Shanghai Fonterra Application Center is the main application center of Fonterra's catering service business in China and creates nearly 300 new recipes every year, said Dai Junqi, vice-president of food service with Fonterra China.

Fonterra currently has four FACs in Shanghai, Beijing, Guangzhou of Guangdong province and Chengdu of Sichuan province. Upgrades of the centers in Shanghai, Beijing and Guangzhou have already been completed.