Nau mai, haere mai.
Brands like Anchor, Fresh'n Fruity and Mainland have long been staples of the New Zealand grocery shop. But will they remain so if they’re manufactured by a multinational like Nestlé or Danone?
Fonterra’s proposed strategic move away from consumer brands caught a lot of people by surprise. But as Lincoln University authors Alan Renwick and David Dean outline in this week’s lead story, there are clear reasons for the dairy cooperative’s shift in focus.
As the authors note, developing and maintaining consumer brands is easier said than done – especially when the cost of living is focusing shoppers’ minds.
“When finances are tight, purchasing decisions will be driven by price. To maintain (and justify) higher prices, branded products need to continually communicate their value and brand story.
This can be time consuming and costly. And there can be a fine line between adding value and simply adding costs.”
By catering to other businesses, Fonterra can focus on providing high-value ingredients. It can also work with other companies to develop new products, or solve technical challenges.
But on the flip side, the sale of these brands could mean iconic products end up being produced overseas. Are New Zealanders ready for Anchor butter produced in Australia – or even further afield?
As always, you’ll find a lot more to read in this newsletter and on our homepage, including a look at the unwelcome sense of déjà vu when it comes to the political unrest in New Caledonia.
All the best for the week ahead, mā te wā.
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