Dutch dairy giant FrieslandCampina is set to invest €100m in the Chinese market this year, according to chief executive Hein Schumacher. The investment will be used to further develop sales channels in smaller Chinese cities and increase production of the dairy co-op’s infant formula brand Friso.

FrieslandCampina, under its Friso and Dutch Lady infant formula brands, currently controls a 10% share of the €30bn infant formula market in China. Since entering the market a decade ago, Friso has grown to become the third-largest infant formula brand sold in China.

The Dutch farmer co-op currently sells 30,000t of infant formula every year in China across more than 120 cities. With this new investment, Friesland plans to expand sales to 180 cities.

Schumacher announced the €100m investment while part of a Dutch business delegation visiting Beijing this week, which was accompanied by Dutch Prime Minister Mark Rutte.

“We are bullish and committed to the long-term growth of the dairy market in China, and will continue to contribute significantly to Sino-Dutch bilateral trade. We will make additional smaller investments in the country in the next few years,” said Schumacher.

The Friesland boss added the co-op plans to launch new consumer dairy products to the Chinese market such as cheese in the coming year. He said the co-op would also increase its presence in the food service sector in China to capitalise on the growing demand for milk products used in tea and coffee.

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