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Fonterra Expands Presence in the US Protein Market with Focus on Whole Food Bars

2024-07-09 02:54:33.453000

Fonterra, a leading dairy company, is capitalizing on the 'proteinification' trend in the US market by partnering with major dairy ingredient customers such as Premier Nutrition Company (PNC) [1d7da2be]. PNC's largest brand, Premier Protein, experienced significant growth in net sales and distribution points in 2023. Fonterra supplies dairy protein ingredients for various products, including ready-to-drink beverages, protein powders, and protein snacks. The high protein snack bar category alone reached a retail value of US$2.8 billion last year. The market value for protein powder in the US is projected to reach US$9.7 billion by 2032 [1d7da2be].

Fonterra's investment in research and development has positioned them as a preferred supplier for many global multinational food businesses. The company's Atlantic region, which includes the Americas and Europe, has witnessed strong demand for its low-carbon dairy products. Fonterra's protein portfolio is well-suited to meet customer demands for high protein content, functionality, and sustainability. Richard Allen, President of Fonterra's Atlantic region, believes that the protein market has evolved beyond its traditional association with weightlifters and athletes. There is now a growing demand for everyday applications of protein, such as healthy snacking and indulgence products like high protein cookies and confectionery [1d7da2be].

Fonterra's interim results demonstrate a continued strong earnings performance, and the company is leveraging New Zealand milk, sustainability, and innovation to expand its presence in the US market [1d7da2be].

The whole food bars market is experiencing growth due to the rising popularity of these bars as a snack among consumers. The bars are made with complete meal nutrition and are made from plant proteins obtained from sources like hemp and soybeans. The market is also being fueled by the increasing demand from athletes and players in different sports. The market is segmented by type, distribution channel, packaging type, flavor type, and end-user. The rising popularity of organic and sugarless bars and the adoption of different flavors and textures in these bars are creating opportunities for growth. However, one of the challenges faced by the market is consumer shifting preferences to other bars. The market is also benefiting from the increasing investment in research and development by various organizations and the rising number of health-conscious individuals and gym enthusiasts. In 2019, approximately 42.66 million Americans consumed energy/diet snacks and bars. The market is dominated by players such as RXBAR, Perfect Bar, ThinkThin, General Mills, Simply Protein, Zoneperfect, Slimfast, PowerBar, Optimum Nutrition, and GoMacro [917c9a7f].

Fonterra showcased its impact in the US market, particularly in the ready-to-drink protein beverages sector. Premier Nutrition Company (PNC), a US leader in ready-to-drink and convenience nutrition, values Fonterra's specialty proteins for these beverages. Fonterra's Atlantic region, led by Richard Allen, contributed approximately 40% of Global Markets' earnings before interest and tax last financial year. The US is Fonterra's fourth-largest market by value, and the company operates across three sales channels: Ingredients, Foodservice, and Consumer. Fonterra has a broad customer base in the US, ranging from start-ups to large global FMCGs. Mars and Ancient Organics are among its customers from the USA. Fonterra has been working to acquire profitable new customers, improve its portfolio, and grow the value of its customer segments in the US market. [7939ea37]

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