Fonterra follows tea and coffee trends

Fonterra has revealed that it is set to meet the demand for adventurous tea and coffee drinks around the world.

Beverages made with yogurt, topped with cream cheese and mixed with cream are growing in popularity, leading Fonterra to establish a new channel within its Global Foodservice business, Beverage House.

Almost 600 million cups of tea and coffee are consumed out-of-home daily in the Asia Pacific region, a 22% increase on five years ago.

Susan Cassidy, general manager marketing, global foodservice, says Beverage House will provide premium Anchor Food Professionals products to the growing number of modern coffee and tea houses, beverage kiosks and dessert bars.

“In Asia, consumers are moving from traditional ‘straight’ brews to drinks with dairy, as they look for a more indulgent way to enjoy their daily fix of coffee or tea,” comments Cassidy.

The trend of adding dairy to more traditional beverages started in China with the tea macchiato, which is green tea topped with a mix of cream and cream cheese.

“This trend was really driven by youth and took off, with people queuing for hours to get the latest creation from their favourite tea house.”

“We moved quickly and as a result the tea macchiato alone grew the volume of our cream and cream cheese sales by 47% in the first half of the 2017/18 financial year.”

Since the start of 2018 Beverage House has sold more than 30,000 metric tonnes of product, enough to create the equivalent of more than 400 million tea macchiatos.

“Beverage House has mainly been focused on China so far, but the potential for growth in other markets is huge. We are now using what we’ve learnt to look at other markets where beverages with dairy are growing in popularity.”

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