Fonterra, a New Zealand-based dairy firm, is stepping towards the launch of its own branded milk formula in China, following the recent allegations that its products contained botulism-causing bacteria.
Fonterra CEO Theo Spierings was quoted by Reuters as saying that the company expects its Anmum infant milk formula brand to be available in 70 cities in the country within next three years.
"We reviewed our plans after the (botulism) crisis. We reviewed whether we should delay it, and we said 'No', so it's full steam ahead," Spierings added.
He said that the expansion plans in China are part of the company's strategy to prioritize growth in its consumer brands and food services in the country compared with other regions.
"In China ... we're going faster. In other geographies, in India, we've put some plans on hold. In Africa, we are only stepping up things in a limited way," he said.
Recently, Fonterra launched Anmum infant formula in Guangzhou province on a pilot basis. The product is expected to be available in Hong Kong later this year.
The launch would be delayed in Beijing and Shanghai, as the company has to yet develop a retail presence and assess whether it could compete in the regions.
