Fonterra takes Anchor brand to China

Four months on from August’s botulism scare, New Zealand dairy giant Fonterra has launched their Anchor brand into the Chinese market.

The brand, which is endorsed by Chinese actress Hu Ke, is being touted a safe alternative to local milk – a strong proposition in a country where dairy safety anxiety still runs high following the death of at least six children from tainted baby formula in 2008.

While just months ago Chinese consumers were panicking and media ran headlines about “poisoned milk”, experts do not think the Fonterra recall will hamper Anchor’s success in the Chinese market.

“From a consumer angle [the August recall] probably does not change the perception that much, especially when it was actually a false alarm. The perception is still very much of [imports being of] better quality,” explains Sandy Chen, senior analyst with Rabobank.

The Chinese Anchor brand, which translates as “safe and good”, is being marketed under a campaign by DDB’s Tribal Worldwide Shanghai which features a Chinese mother and daughter visiting a Fonterra farm and showcases New Zealand’s pristine environment.

By selling its own brand in China Fonterra is seizing an opportunity amid a massive milk shortage in the country, as the local dairy industry shifts to large-scale farms in an effort to keep up with demand. In the first 10 months of 2013 alone liquid milk imports to the country increased 112% – and by selling their own brand in China, Fonterra will gain a better margin on these sales.

Tags: Advertising Age  Anchor  China  Fonterra  milk  milk products  

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