stakes bet on foodservice growth in China after $4.2b brand sale to Lactalis

At Shanghai's huge National Exhibition and Convention Centre, where the Bakery China trade show sprawls across multiple halls, Fonterra has come to make a statement. The New Zealand-based dairy co-operative has sold its China-based dairy business, including the Flying Cow and Anmum brands, to French dairy giant Lactalis for a staggering $4.2 billion. This deal marks a significant milestone in Fonterra's strategy to focus on high-growth markets, and China's foodservice sector is undoubtedly one of the most promising. With a rapidly growing middle class and increasing demand for premium dairy products, China's foodservice market is poised for sustained growth. Fonterra's decision to exit the Chinese dairy market suggests that the company is betting big on Lactalis' ability to capitalize on this trend, and the sale is likely to have far-reaching implications for the dairy industry in China.