Fonterra steps up expansion strategy in China after botulism scare
WELLINGTON (REUTERS) – Fonterra, the world’s biggest dairy exporter, is accelerating its expansion strategy in China and plans to sell its own branded infant milk formula in 70 cities there within three years, its chief executive officer said on Wednesday.
Mr Theo Spierings said in an interview with Reuters that the company was undeterred by a recent botulism scare and would push ahead with plans to enter the lucrative branded infant formula market in the world’s second-largest economy.
“We reviewed our plans after the crisis. We reviewed whether we should delay it, and we said ‘No’, so it’s full steam ahead,” Mr Spierings said.
He said consumers were still anxious about its products after a food safety scare in August, when Fonterra said it had found a potentially fatal bacteria in one of its products, triggering recalls of infant milk formula and sports drinks in nine countries including China.