Trade Resources Company News Fonterra to Test Online Sales of Tip Top Ice Creams in China

Fonterra to Test Online Sales of Tip Top Ice Creams in China

New Zealand-based dairy co-operative Fonterra is set to test online sales of its Tip Top ice cream brand in China.

The company plans to sell Tip Top ice creams online through TMall platform operated by Chinese e-commerce major Alibaba.

Fonterra said that the distribution of ice creams will be handled by specialist frozen products distributor Zhuhai Ice Technology.

Tip Top director Kim Ballinger said initiating a flexible "trial and learn" approach using e-commerce will assist the company to test the brand and products and be ready to capture future growth.

Ballinger said: "China is Fonterra's biggest market and this trial is a small way we can add to our offering there. There will be a lot to learn from this trial programme. We know the brand, sales platforms and product formats will need to evolve to suit consumers' changing needs.

"But it is critical to get into the take-home segment early, get our systems up and running and learn what consumers want so we can quickly capture opportunities as they emerge."

According to a research by Mintel, the total market value of ice cream sales in China increased by 90% to $11.4bn in 2014 compared to 2008.

Tip Top is targeting the take-home ice cream segment, which is expected to have a potential for growth.

Initially, it will introduce six flavours of ice creams- Vanilla, Chocolate, Hokey Pokey, Cookies and Cream, Neapolitan, and Strawberry-in two-litre tubs.

Ballinger said: "Our research tells us that Chinese consumers want to know they are buying the exact same product that we eat in New Zealand.

"The product, packaging and flavours available in China are identical to what we sell in New Zealand which will help us give consumers assurances around quality and authenticity."

Source: http://sweetsanddesserts.food-business-review.com/news/fonterra-to-test-online-sales-of-tip-top-ice-creams-in-china-170616-4926028
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