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

 


Stats: Auckland’s Population Falls For The First Time
In the wake of the COVID-19 pandemic, New Zealand’s population growth slowed down with Auckland recording a population decline for the first time ever, Stats NZ said today. “New Zealand saw slowing population growth in all regions... More>>



BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>


Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>



Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>