Fonterra Asks Top Dollar For Two New UHT Milks

Fonterra is asking top dollar for two new UHT milks it has launched in China, developed specifically for that market.

The Anchor-branded “Upline” range costs either $6.40 per litre in a gift pack of 10 (packaged as 250ml cartons) or $5.33 per litre in a “shipper” case containing 24 cartons, each 250ml.

LiveUp is a high-protein milk with 50 per cent more protein than standard UHT (at 5.7 grams of protein per 100ml), while NaturalUp is made from certified fresh organic New Zealand milk that meets Chinese and New Zealand organic standards.
Sales are initially online but with a move into stores for the LiveUp milk in January. The NaturalUp milk will be available only through e-commerce platforms.

A Fonterra spokeswoman said the extra protein came from ultra-filtration technology which concentrated the goodness and the protein content in the milk without having to add anything else.

She would not reveal how much of the milk the dairy giant expected to sell because it was “commercially sensitive”.

Fonterra greater China president, Christina Zhu, said the new products were a response to changing consumption patterns, where Chinese consumers were increasingly seeking out more premium and healthy options.

She quoted research from the Boston Consulting Group which claimed Chinese consumers were now the world’s most health conscious. Seventy-three per cent were willing to pay a premium price for items proven to be healthier, 12 per cent above the worldwide average.

“Pushing more into this high-growth premium space is a natural progression for the Anchor brand, which has been performing well since it launched in China in late 2013,” Zhu said.  The LiveUp milk is being produced at Fonterra’s Takanini site and the NaturalUp milk at its Waitoa UHT site.

By: Gerard Hutching