Fonterra in Dairy - 1000+ dairy products and 140+ brands is what makes Fonterra a global diary leader

Shift in Focus from White Milk to Specialized Dairy Products: White milk remains a staple in Fonterra’s portfolio, but the fluctuating distribution numbers—peaking at 30 products in 2018, followed by a decline in subsequent years—suggest that consumer demand for basic dairy products is stabilizing. This could indicate that Fonterra is shifting its focus towards more specialized or value-added dairy products, aligning with global trends where consumers are moving towards fortified, functional, and health-oriented alternatives.

Consistent Investment in Yogurt and Cheese: Spoonable yogurt shows a consistent presence, peaking in 2019 with 24 active products, which indicates that Fonterra is responding to the global surge in demand for convenient, healthy, and probiotic-rich foods. Similarly, hard and semi-hard cheeses have seen a notable increase, particularly in 2022, with 29 active products, likely catering to both home consumption and foodservice industries. The steady distribution of these categories points to Fonterra’s strategy of capitalizing on consumer interest in high-protein, functional foods, which have become staples in diets focused on health and wellness.

Slow Growth in Plant-Based Alternatives Signals Opportunity: Despite the rising global demand for plant-based dairy alternatives, Fonterra’s presence in this category remains minimal, with only 1 or 2 products in this category throughout the decade. This slow growth suggests that while Fonterra may still be focused on traditional dairy, the opportunity for expansion into plant-based dairy products is vast. As plant-based diets gain popularity for environmental, ethical, and health reasons, a stronger product focus here could provide Fonterra with significant growth potential.