Building without BRICs

Arla Foods’ news that it has entered into joint ventures in Nigeria and Senegal reminds us all that while China, India, Russia and Brazil often capture the bulk of media attention when it comes to discussing emerging markets, there are other places to see results in the dairy industry throughout the world. China and Russia’s recent woes have only added to the impetus to diversify if a company is to succeed globally. So, a look at places like West Africa, South Asia and South America are in order. Often, the lesser known parts of the world can provide a niche where even small companies can thrive. Lye Cross Farm and its successful moves to South Korea, the Czech Republic, Dubai and Austria springs to mind – not usually key markets, but these smaller places can be reap rewards with some insight into what local consumers want and how to best deliver it to them.

That is always the challenge, and one that giants like Nestlé and Arla know. While the big consumer brands may sell worldwide, they still have to be tailored to the local market, through advertising and marketing. People may be enamored of global brands, but they will always want to be sold to in their own language and customs. Dairy can be global, but it has to act local.