FrieslandCampina expects to record double-digit growth in the sale of premium infant nutrition in China throughout the year. CEO Jan Derck van Karnebeek said this during a visit to the said country.
Van Karnebeek was present at a conference of the China Dairy Industry Association (CDIA). According to him, FrieslandCampina's sales of infant food are going through a special recovery phase, albeit mainly the highest-quality type of infant food. Something about this was also mentioned in the company's semi-annual report. In the first half of this year, FrieslandCampina recorded double-digit sales growth with this type of infant food. Van Karnebeek thinks that this trend can also be maintained for the rest of the year, he told China Daily. However, according to him, competition is gradually becoming fiercer.
Post Covid
FrieslandCampina wants to roll out the distribution of premium infant food to more cities and expects to continue doing so for some time to come. The end of the corona restrictions also offers new possibilities. Consumers want to spend more (again) and the birth rate may be better maintained. The recovery of infant nutrition sales in China, albeit mainly in the higher segment, is remarkable. At the end of 2021, beginning of 2022, FrieslandCampina seemed to want to sell its infant nutrition division, just like many other companies in that sector. That was after FrieslandCampina started earning less and less with this product in China after a very successful period around 2013-2016. The scale and margins in the current success round are still unclear.