Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra Focuses on Licensing IP

3 November 2004

Fonterra Focuses on Licensing IP to Build New Value-Add Business

Fonterra Dairy Co-operative is combining its expertise in liquid milk formulations, with its business, technical and marketing know-how, in a new, value-add business focused on licensing its intellectual property (IP).

Dr John Smith, Fonterra Business Manager Formulated Milks, says the new business incubator will focus on licensing "formulations and IP" in return for sales-based royalty payments or licensing fees.

Says John: "This is very exciting. The possibilities are huge. We want to establish a small set of customers that rely on us for their product development, who will tell us their business strategies and what products they want ahead of time, so that we can develop them. We want to be fully integrated into their business so that we are part of their ongoing success.

"What we are doing is asking customers to pay very transparently for the value we bring and in that way we will be recognised as a value-adding company. This is a model which has potential to roll out into many other businesses within Fonterra."

The main target markets for Formulated Milks are Asia, particularly China, and the Middle East with nutritionally enhanced milk products.

These include "Junior", a milk for 3-10 year-olds, which has additional iron, protein, Vitamin C, Vitamin D and calcium, "Nurture", a milk for pregnant women, with added iron, folate and calcium and "Silver", a milk for active seniors, with extra calcium, Vitamins D and B12.

Other formulations include products containing non-dairy protein, such as rice and soy milks, a specially formulated milk suitable for people with Type 2 diabetes and "Dulce de leche", a caramel flavoured ingredient for use in a range of dairy-based products.

Launched in October, the Formulated Milks incubator business is in discussion with a number of potential customers and, says Dr Smith, the future is looking good.

Fonterra's New Business General Manager Craig Knox says the addition of the new incubator business, Formulated Milks, is a significant step forward in building Fonterra's value-add activities and a further eight to ten potential incubator businesses are being explored.

Fonterra's Marketing and Innovation Group, which concentrates research and development, and marketing staff, at Palmerston North, was established last year to drive value-added growth in Fonterra's Ingredients business.

Specialty ingredients growth businesses are currently growing at 12 per cent a year, contributing more than $500 million in revenue in the last financial year.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news