Inside: Dairy Market
FrieslandCampina perseveres in China
FrieslandCampina will increase investments in the Chinese market. This was announced by the largest dairy company in the Netherlands during the trade mission to China. CEO Hein Schumacher indicated that they have continuously remained optimistic about this market. The steps that will be taken show that big plans are ready. The Huishan affair has not detracted from this.
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FrieslandCampina plans to invest more money in China. The aim is to expand the product lines and to bring more high-quality Dutch dairy products to the market. Schumacher, CEO of FrieslandCampina since January 1, said this in an interview with Global Times. The dairy company was one of the companies that went on a trade mission to China with Prime Minister Mark Rutte.
Driving developments
In 2018, the dairy company wants to invest €100 million in the Chinese market. This should accelerate the pace of developments in China. The money goes to existing factories and brands, but also to expanding and modernizing distribution. It helps that Chinese President Xi Jinping promises to further open the country to parties from outside China. He will also further boost prosperity in the country.
180
cities
Although the largest dairy company has barely been active in China for a decade, the cooperative already manages to reach 120 cities. This is what Rahul Colaco, president of FrieslandCampina in China, reports. The plan is to expand this number of cities to 2018 by 180.
"The average income of the Chinese population has increased and with it the opportunities in smaller cities have also increased," says Colaco. Here the so-called called Tier-3 and Tier-4 cities.
Friso sales volume is increasing rapidly
In 2017, FrieslandCampina achieved the turnover to €12,1 billion. A plus of 10,1% compared to a year earlier. Worldwide sales of the Friso brand exceeded €1 billion. Friso was number one in sales in China. In 2017, the sales volume approached 30.000 tons, but the company is expected to exceed this volume in 2018.
Schumacher emphasizes that there are still more than 1.000 baby food brands on the market in China. "It remains the most competitive market. I would like to reiterate that we continue to remind consumers that the quality of our products is consistent and that the products are continuously improved. In this way we try to achieve growth. We do this step by step and city for city, in order to expand our market share."
In China FrieslandCampina offers 2 brands: Friso, which is completely imported from the Netherlands and Dutch Lady. The latter is produced locally. In the meantime, work is also being done on optimal utilization of the factory that FrieslandCampina took over from Huishan and where the dairy company was already active through the Friesland Huishan joint venture. The milk is still purchased locally, but no longer from Huishan Dairy.