Innovation a key driver of Fonterra’s Foodservice growth  

6 MINUTE READ

Foodservice is a high-value channel for Fonterra and is a key part of the Co-op's strategy.

Recognising the unique needs of the foodservice industry, the NZ Dairy Board launched the foodservice business in the 1990s, to provide much-needed support to the booming industry.
It was named Fonterra Foodservice in 2001, and in 2015, the business was rebranded and became Anchor Food Professionals™ (AFP). 

This strategic move was driven by the desire to provide tailored dairy solutions that enhance the performance and creativity of food professionals, playing our part in our customers' success. 

Today, Anchor Food Professionals is one of the leading brands in the global foodservice industry, supplying premium dairy products to more than 50 countries. The Foodservice business brought in $3.9 billion in revenue and $749 million in gross profit for the Co-op in FY23.

With a focus on performance, innovation and partnership, our category teams and market teams collaborate closely with Fonterra Research and Development Centre (FRDC) and in-market application centres to develop new products and applications for customers that capitalise on trends, tastes and local markets.

Fonterra’s in-market application centres are critical to our Foodservice’s success. Each year, our team of chefs in these application centres develop more than 200 new applications and ideas for bakery, dining and beverage channels.

Our commitment to new applications, combined with the strength of our FRDC resources and dairy excellence, has led to the creation of specialised products designed to meet the evolving needs of foodservice customers and consumers. These include our range of whipping and cooking creams, versatile cheeses and cream cheeses.

Our hero products include the AFP Whipping Cream and AFP Individually Quick Frozen (IQF) Mozzarella.

Our Whipping Cream was developed over 30 years ago and leads the segment in many of our export markets. Delivering high value to the Co-op year over year, it is an excellent example of how we add value to farmers' milk.

AFP Whipping Cream is renowned for its stability, producing consistent rosettes in cream cakes and tea macchiato topping.

This product alone is used in about 400 million beverages and 260 million cakes in food and beverage outlets across China, with a steady increase in demand each year. 

The team at FRDC disrupted the global pizza industry in 2008 by inventing IQF mozzarella to meet customers' need and dramatically reduce production time from three months to just six hours.

With the new technology, Fonterra’s main IQF mozzarella manufacturing site in Clandeboye became the largest producer of natural mozzarella cheese in the Southern Hemisphere, producing enough to top 500 million pizzas a year.

The Co-op exported over 63,000MT of IQF mozzarella in FY23, topping pizzas across China, Southeast Asia and other parts of the globe. 

About Fonterra's Foodservice business


Recognising the unique needs of the foodservice industry and the desire to provide tailored dairy solutions that enhance the performance and creativity of food professionals, Fonterra launched Foodservice as a dedicated division to serve chefs, bakers and foodservice operators. 

Through our Foodservice business, we work alongside customers to deliver end-to-end services and solutions, driving customer satisfaction and shaping the future of the foodservice industry. 

Description


Our Individually Quick Frozen (IQF) Mozzarella is one of the highest quality cheeses used in pizzas. With technologies developed by Fonterra Research and Development Centre, our natural mozzarella can be produced in just six hours, rather than the traditional time of three months.

Application


Our IQF mozzarella is topping millions of pizzas from some of the world-famous pizza chains such as Pizza Hut. The use of IQF mozzarella in hot pots and dumplings is also becoming increasingly popular in China, driving the demand for IQF mozzarella in this market. Each year, our manufacturing sites can produce enough cheese for up to 500 million pizzas.

Description


Our Whipping Cream is renowned for its stability, producing consistent rosettes in cream cakes and tea macchiato toppings.  

Application


Our cream products are used in about 400 million beverages and 260 million cakes each year, and in some popular products such as KFC’s egg tart.

Description


Cream cheese is one of the key high-value products for Fonterra Foodservice. Demand for cream cheese is growing in China and Southeast Asia on the back of changing Asian diets. The rise in demand is mostly being driven by an expanding middle class and growing appetite for cream cheese in a wide range of applications from bakery to beverage. Fonterra's global advisory chefs and regional market teams actively work in markets to design products for customers.   

Application


Our cream cheese goes into outlets such as bakeries, restaurants and tea houses, and is used in the fusion of traditional Chinese pastries like mooncakes and other beverage applications such as the topping cream on tea macchiatos.

Description


Our portfolio of processed cheese includes Slice on slice cheese and string cheese, which are supplied through our brand or manufactured to customer specifications. 

Application


Our Slice on slice processed cheese is served in billions of burgers at some of the largest Quick Service Restaurant brands such as McDonald's, Burger King, KFC and Subway. Our manufacturing sites can produce enough cheese for up to 3 billion cheeseburgers each year. 

Description


Our Lamination Butter Sheets are specifically designed for bakery applications to create soft and flaky pastries.

Application


The rise of specialty bakeries and cafés across China and Southeast Asia is driving a strong growth opportunity for our lamination butter sheets. Our global advisory chefs and regional market teams actively work with customers to develop new applications for butter in traditional pastries.

Our Foodservice history

Fonterra's Foodservice business is dedicated to pushing the boundaries of dairy innovation to respond and evolve along side our customers over the years. As a key part of the Co-op's strategy, we're looking to continue to grow our Foodservice's legacy of excellence.