USA, the land of opportunity
As the USA celebrates its Independence Day holiday, we thought it was a good opportunity to showcase the impact your milk makes in the Co-op’s fourth largest market by value.
When walking into one of the hundreds of Costco stores in the United States the first thing you see are massive stacks of ready-to-drink protein beverages, addressing the growing focus on health and wellness in the US.
Dairy ingredient customers in the US strongly value Fonterra’s speciality proteins for these ready-to-drink beverages, and we claim most of the leading players as customers, including Premier Nutrition Company (PNC).
As a US leader in ready-to-drink and convenience nutrition, PNC’s largest brand is Premier Protein, the number one brand in the US ready-to-drink category.
As the supplier of Premier Protein’s key ingredients, Fonterra is excited to continue growing the partnership with PNC, helping to bring to life their ambitions across their business in the US and globally.
Richard Allen, President Atlantic
Fonterra in the US
Fonterra’s Atlantic region includes the Americas – North, Central and South – and Europe, and is led by Richard Allen, President Atlantic and former Group Director of Farm Source. It was formed in August 2022 as part of Global Markets, and last financial year (2022-23) the Atlantic region contributed approximately 40% of Global Markets’ earnings before interest and tax (EBIT).
Specifically, the US is the Co-op’s fourth largest market by value, and a fantastic demonstration of our strategy in action– New Zealand milk, sustainability, and innovation.
"In the US, we operate across our three sales channels: Ingredients, Foodservice and Consumer," Allen says.
Market demand, particularly for our value-added ingredients, has held up well and we are seeing this play out through strong demand for our low-carbon dairy.
"The US business has delivered a strong performance in recent years, and the US economy has been remarkably resilient. Market demand, particularly for our value-added ingredients, has held up well and we are seeing this play out through strong demand for our low-carbon dairy. Importantly, we have a broad customer base in the US, with our customers ranging from agile venture-capital backed start-ups to large global FMCGs (fast moving consumer goods)."
To highlight just a couple other customers from the US:
Mars:
A private and family-owned business. Our partnership, one that sees our ingredients included in Mars’ popular confectionery products, continues to build momentum with deeper and wider commitments to collaborate and grow.
Ancient Organics:
A private California company, Ancient Organics partnered with Fonterra to develop an organic ghee using our New Zealand organic butter that’s scheduled for a major launch this year with strong volume expectations and expansion plans beyond the US.
Premier Protein is the number one brand in the US ready-to-drink category
Allen says, despite the strong growth in the US milk pool, we cannot rest on our laurels.
"To address the opportunity and challenge in this phenomenal market, we are working to grow the value of our customer segments, acquire profitable new customers, and improve our portfolio. Central to this is New Zealand milk and working with customers on new innovations," he says.