AgM update, page-150

It was mentioned a couple of times, but there was a specific question about when we will see new products (cheese and butter) outlined in the Feb 18 announcement about Fonterra. Apparently they were anticipated by end of F19.

JH said something to the effect that at this stage Fonterra beneficial primarily in expanding their milk supply, but the new products they wanted to focus on were those mentioned in the announcement (i.e. China label Stage 4 and Smart Nutrition for China market). It was about branching off with new products only in the markets where this would have most impact. The questioner asked if this meant butter and cheese had been delayed, JH said fairly abruptly 'No'. She provided a bit of an extended explanation later on but I don't recall the specifics.

If you ask me, this makes sense as some peripheral products that have been introduced in the Aus market don't seem to have done that well - A2 Ice Cream for instance, and there was A2 yoghurt produced in partnership with Jalna. Neither exist any more which suggests they weren't incredibly profitable. So the logic is to be more strategic about new products and driven by where the demand is clearest.