Renaming New Zealand Milk to Fonterra Brands will better identify the products customers eat to the expertise of the entire Fonterra group, the company has said.
The rebranding is the first major exercise since consumer products boss Sanjay Khosla joined the company last September.
Khosla said the Fonterra name had
established a strong international dairy presence since it was invented in 2001. "We are talking strength by association." The word itself is a Latin construct meaning "fountain of the earth".
He said many consumer brands in supermarkets around the world carried the logos of their parent companies. But if someone wanted to buy Fonterra brands, they would have to rely on their memory.
The Fonterra branding will be added progressively to the company's packaging. The addition of the logo will coincide with a general revamp of packaging to maximise the marketing efficiency and to maintain costs.
Khosla has already outlined a new strategy for the company called "winning through brands".
Part of that strategy will involve pruning the brand portfolio to focus on the few key "power brands" that return most of the revenue.
In spite of adopting a name more closely associated with its parent company, Fonterra Brands will be a clearly segregated financial entity.
Change ahoof
* Formerly NZ Milk.
* A consumer dairy product company selling yoghurt, dairy spreads and milk drinks.
* $3.8 billion of revenue generated to May 31, 2004.
* Employer of 12,300 people in 30 countries.
* Owns about 100 brands including Anchor, Mainland and Fernleaf.
