FrieslandCampina sees challenges for Friso

Friso Gold, the Asian baby food brand of the FrieslandCampina cooperative, has had a challenging six months. This is evident from the half-year figures of the parent company. According to Crissie An of Friso Gold, this is because the sale of infant nutrition in China is under considerable pressure.

The sale of infant nutrition in China has been under pressure for months, partly due to competition from various local players and the shortage of the ingredient lactoferrin. "In addition, the Chinese baby food market has a lot to do with counterfeit products and fraud."

QR codes
To prevent this, Friso Gold launched in August TrackEasy† Asian consumers can see the origin of the product via these QR codes. The products of the Friso brand are produced in the Netherlands and then exported to Asia. Friso is available in more than 25 countries (including Hong Kong, Malaysia, Singapore, Indonesia, Vietnam, Greece, Russia and the Kingdom of Saudi Arabia).

Placing QR codes on baby food products is not entirely new. The Australian company 'Nature One Dairy', which has also been exporting dairy products to China since the beginning of 2018, has already implemented QR codes on their products to prevent fraud.

Opportunities remain great
Despite the challenges in the Chinese market, the company believes there are significant opportunities in the Asian baby food market. According to data from 'The Lancet' magazine, China will account for more than half of global baby food sales by 2019. This is estimated to be worth €64 billion.

In addition, a report by market agency Nielson has shown that 50% of Chinese consumers are willing to pay more for trusted brands and brands with a clear origin. In comparison, the global average is 37%. This is an area that Friso Gold hopes to address with TrackEasy.

Stable numbers
FrieslandCampina achieved a turnover of €2019 billion in the first half of 5,6. Last year that was slightly higher, when turnover in the first half of the year amounted to €5,7 billion. On the other hand, the cooperative did achieve a higher gross profit: €935 million versus €890 million in the first 6 months of last year.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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