Fonterra Future Dairy, a joint venture between New Zealand’s dairy cooperative Fonterra and India’s Future Group has unveiled a new dairy brand called Dreamery in India.
The new range under the brand include dahi, UHT (ultra-high temperature) toned milk, strawberry and chocolate milkshakes.
The dairy products will be available on the shelves in Mumbai, Pune, Bengaluru, and Ahmedabad and later debut in other cities including Hyderabad, Surat and pan-India in the next two years.
Hindu Business Line reports that the company has tied up with Baramati-based contract manufacturer Schreiber Dynamix Dairies for processing its dairy products.
Fonterra Future Dairy said it will initially focus on building a stronger consumer base and expansion of its market position in India before expanding its product portfolio of value-added dairy products.
“Quotes saying that their main caliber product range is focused on taking staple products and using our world-class innovation to give them a contemporary and relevant twist,” said Ishmeet Singh, CEO of Fonterra Future Dairy.
“However, as we move forward, we’re going to provide more innovative products that will deliver superior quality, taste and nutrition across the Dreamery product range.”
Fonterra and Future Group formed the JV last year with a goal to produce a range of consumer and dairy products for the Indian market.
Fonterra brings dairy innovation and expertise to the partnership while meeting the needs of consumers in the market that is driven by growing urbanisation, consumer affluence and higher disposable income.
“By Collaborating Fonterra’s global dairy innovation, manufacturing and nutrition expertise with Future Consumer’s leadership in retail and distribution, our goal with the launch of Dreamery is to delight Indian consumers with extremely good quality, nutritious and great-tasting dairy products, which is what we call Dairy 2.0.
“Working with Future Consumer gives us an understanding of the complete consumer ecosystem and a right to win in the Indian marketplace.
“It’s a unique synergy that is set to create a new force in the Indian dairy industry,” said Sunil Sethi, chairman of Fonterra Future Dairy, and managing director of Fonterra brands Sri Lanka and the Indian subcontinent.
The JV said it targets a turnover of ₹5,000-6,000 crore (US$870 million) and market share of 5% in value-added dairy product space in seven years.