Fonterra debuts FernMark grass-fed Anchor cream at Bakery China

While the $4.2 billion sale included the Anchor brand in Australia and New Zealand, the deal excluded Greater China, where Anchor products are widely used by professional chefs, bakeries and cafes.

Fonterra’s president of global foodservice, Teh-han Chow, said the new cream launch reflected how rapidly customer expectations were evolving in China.

“Designed around clean label philosophy, this product meets the growing Chinese demand for transparency, performance and natural goodness,” he told the crowd gathered in front of the Anchor pavilion.

“As China advances into a new era of high-quality development, we believe that grass-fed dairy from New Zealand will play an increasingly important role in advancing nutrition, health and sustainability.”

The cream’s light, smooth texture makes it well-suited for cake fillings and soft bakery products, while also supporting whipping, piping and detailed decoration.

Chow said the addition of the FernMark Grass Fed logo was a significant milestone and a “phenomenal moment” for Fonterra.

“New Zealand provenance and grass-fed production really matter in this market,” he said.

Trade Minister Todd McClay, speaking at Bakery China, said Fonterra played a vital role in supporting China’s food and beverage sectors, including the bakery industry.

“New Zealand and China share a longstanding relationship with trade, innovation and people-to-people connections. At the heart of this relationship is trust, which has been built over decades.”

McClay said the grass-fed standard was about delivering genuine value to consumers.

“It’s about trust in the system, trust in our farmers, our science and our regulators. It’s about backing our producers with clear and high standards.”

China’s bakery market continued to expand, despite the country’s slowing wider economic growth, with dairy cream increasingly displacing plant-based alternatives as consumers trade up to more premium ingredients.

Fonterra says its Greater China foodservice business is a key part of its value-add strategy, with products reaching hundreds of cities. It has six application centres in China, based in Beijing, Shanghai, Guangzhou, Chengdu, Shenzhen and Wuhan, where chefs work with customers to develop ideas and recipes, catering to local market trends and preferences.

Teoh Joo Cheong, one of Fonterra’s senior chefs in the market, said his focus was on helping customers grow in an intensely competitive environment.

“We’re not just selling ingredients, we work with the customers to develop recipes, find the pain points and also do the analysis for the trade marketing for the consumer.”

That included everything from product mix to store layout and marketing, he said.

“There is fierce competition, so we have to try and stay ahead of the game and try to be a trendsetter.

“We still have market share to grow, but at the end of the day, we try to be relevant to the market.”

Fonterra’s cream products are manufactured at the co-operative’s Waitoa UHT plant, near Matamata.

The foodservice business achieved global revenue of $6.4 billion in 2025 with an operating profit of $340 million.

Duncan Bridgeman is the managing editor of NZME Business News, overseeing the Business Herald and BusinessDesk. His travel to Shanghai, China, was funded by the Asia New Zealand Foundation.