China's foodservice market is easier to penetrate for Fonterra and Friesland, as chefs trained in demo kitchens find ways to use dairy.
At $150 billion a year, China’s foodservice industry is the largest in the world after the U.S. and Japan, and western-style cuisine is growing in popularity
Fonterra sold the equivalent of 271 million liters (72 million gallons) of milk in consumer and food-service products to China in the quarter ended Oct. 31, a 36 percent increase from a year earlier.
The gross margin in China across both categories increased to 39 percent from 32 percent
Fonterra’s sales to caterers and restaurants there are increasing more than 10 percent a year, said Christina Zhu, Fonterrra’s managing director in China.
Sales of mozzarella cheese surged 66 percent last year.
China’s 360 billion-yuan ($52 billion) consumer dairy market is dominated by local suppliers Inner Mongolia Yili Industrial Group Co. and China Mengniu Dairy Co.
Source: Bloomberg
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