Dairy giant FrieslandCampina, maker of the popular Friso baby formula line based in the Netherlands, is set to introduce a new infant formula late this year to cater to China’s ultra-high-end consumers, according to Chief Executive Roelof Joosten on Saturday, Sept. 12.
The Global Times reported that only half of the Chinese market is being served by FrieslandCampina now because it is absent from the super-premium segment.
"So the new product, which is from the Netherlands, will go into the super-premium market, and therefore we expect even further growth on the basis of that production," Joosten told the Global Times.
This year, the sales of the Dutch firm continue to grow in the Chinese market, the report added. According to Joosten, the company expects to reach 1 billion euros ($1.13 billion) in revenue for this year in China, roughly 10 percent of its global sales. It also aims to increase sales in the Chinese market to 20 billion euros eventually, more than 10 percent of its global sales.
About 80 percent of FrieslandCampina's products are infant formula being developed for the Chinese market. The remaining 20 percent are dairy ingredients that include whey powder.
According to the report, FrieslandCampina is also planning to introduce 250-milliliter containers of UHT milk for the general consumers in China.
According to Robobank, annual per capita consumption of milk in China is only 25 liters, compared with 350 liters in the Netherlands.
"The issue is how to create demand," Joosten added, saying that the firms hopes that its new infant formula brand, to be sold via a joint venture with China Huishan Dairy, will win over Chinese consumers despite being produced domestically.
China's "One Belt, One Road" initiative has opened up huge strategic opportunities for FrieslandCampina, the report said.
Joosten added that the firm would like to bring their products to China faster through a train route from Rotterdam through Moscow to Chongqing.