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White Milk Growth In South Island For NZDF

August 9, 2002

White Milk Growth In South Island For NZ Dairy Foods

Statement made by Peter McClure, Managing Director,
New Zealand Dairy Foods Limited

New Zealand Dairy Foods’ decision to established its own milk processing facility in the South Island has produced an immediate commercial return, with the company registering significant increases in sales volumes and market share.

In addition to increased sales of branded Anchor milk, we have also won a major house brand contract, producing a secure and stable throughput volume for our Christchurch processing plant, and a sound base from which to make further initiatives.

Sales volumes of milk by New Zealand Dairy Foods in the South Island have increased by 40% in six months, and the Company now holds approximately a 13% South Island market share.

This South Island growth has consolidated Anchor as the number one brand of white milk nationally.

When we established our own facilities in the South Island we set ourselves aggressive and demanding targets, and have exceeded these by a comfortable margin.

Prior to establishing our Christchurch processing plant, we obtained our South Island supplies through licensing and contract arrangements.

Milk for the new plant is now procured direct from South Island farmers contracted to Fonterra.

From New Zealand Dairy Foods’ perspective, the formation of Fonterra, and then our separation from the dairy food giant, has been positive.

New Zealand Dairy Foods is an extremely focused fast moving consumer goods company and since our separation we have increased our range of dairy products.

The separation has also been good for consumers, and the fact that we have grown our market share in Mainland’s base (Mainland is a subsidiary of Fonterra) demonstrates that there is active competition in the local market.


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