Fonterra takes big bite of Asian cheese market

Chocolate cheese slices developed by Fonterra have been such a success in Taiwan that they have entered the Singapore market and are now being launched in Malaysia, Indonesia and Thailand.

The dairy giant is also reaching into more traditional Asian homes by partnering with Singapore company Jolibean to launch chocolate cheese pancakes, a variation on a dish usually eaten with fillings like peanut or red bean paste.

Fonterra category development manager Richard Tay said the company's research showed cheese was increasingly being viewed as a healthy and nutritious food in Asia, where consumers have traditionally shunned dairy products.

"We want to build on this increasing awareness by introducing a range of new cheese products which cater to Asian palates."

The new flavour of cheese, developed in New Zealand at a cost of around $50,000, grabbed a 10 per cent share of the more than $1 million cheese market in Taiwan within six months of its launch.

It has also been well received in Singapore, the company said.

Fonterra makes $25 million a year selling Chesdale cheese in Asia. Taiwanese consumers buy around $6.7 million of Chesdale cheese, slightly more than the $6 million worth consumed by New Zealanders.

With a 54 per cent share of the market, Chesdale is the biggest cheese brand in Taiwan.

The cheese market in Taiwan is growing at a rate of 10 per cent a year, but with innovations like chocolate cheese, Chesdale is enjoying faster growth of around 15 per cent annually.