The parallels between French food multinational Danone S.A. and New Zealand-based dairy cooperative Fonterra are striking. Both are leading players globally in dairy—Danone is the world’s third largest dairy company, while Fonterra is the fifth largest.
Both companies also entered the Indian dairy market in the same way. Danone made its debut in the Indian dairy market with chocolate-flavoured milk in 2013. Six years later, Fonterra, in a joint venture with Indian FMCG company Future Consumer, entered with chocolate- and strawberry-flavoured milk. These, as well as two other products, were launched last month.
Future Group in tow, Fonterra wants to do what Danone couldn’t
In 2018, French dairy major Danone exited the Indian dairy market by selling its yoghurt facility. A year later, another foreign dairy major—New Zealand’s Fonterra—thinks it can do what Danone wasn't able to
Fonterra, the world’s fifth largest dairy company, launched three products in India in June
This comes less than a year after global dairy major Danone had exited from Indian dairy market
Fonterra’s strategy is poles apart from Danone. It has a tie-up with FMCG company Future Consumer and has outsourced manufacturing
Will Fonterra go one better than Danone or suffer a similar fate?