Fonterra culls international brands

Fonterra has culled more than a quarter of its international brands in a move to consolidate marketing resources.

Fonterra Brands managing director Sanjay Khosla said yesterday that the company had reduced its brands from 133 to fewer than 100.

He said the aim was to concentrate resources behind a handful of "power brands" which were the most profitable. "If you can't make money with the brand, either you fix it or you sell it," he said.

The key was to apply "ruthless commercial rigour". No magic number of brands had been set - and the pace and scale of change would be assessed each quarter.

The consolidation is part of a wider marketing project at Fonterra Brands. So far, the dairy co-operative has unveiled a new look logo to be added to consumer brand packaging.

Khosla said the aim was to drive Fonterra's reputation as a dairy leader with consumers but with a strong focus on cost.

The logo would be added to packaging as and when products were due for a revamp. Fonterra Brands - formerly known as NZ Milk - exceeded its earnings targets last year.

Khosla said the good result was achieved despite high commodity costs and price controls in important markets such as Sri Lanka and Venezuela.