Devondale Murray Goulburn Reinforces Commitment to China with Brand Relaunch

21 Nov 2014

Australia’s largest dairy foods company Devondale Murray Goulburn (MG) has relaunched its Devondale long life milk (UHT) in China in new bilingual metallic packaging and pack sizes which were designed based on Chinese consumer research and feedback. The range, which comes in 200ml and one litre as well as associated family gift packs, reinforces the dairy co-operative’s intentions to maximise the opportunities gained by the AustraliaChina Free Trade Agreement (FTA) signed.

MG’s exports accounted for more than 51% of its revenue in the previous financial year, with MG exporting A$1.5 billion including more than A$200 million to China and Hong Kong in the form of infant nutrition, milk powder, cheese and drinking milk.

The new metallic UHT packs have a premium look and feel and feature a distinctive gold Devondale logo, reinforcing the brand’s premium positioning in the market. The relaunch and expansion of the Devondale UHT range in China is part of the farmer co-operative’s strategy to capture the value of the increasing demand by Asian consumers for safe, reliable dairy foods.

“We have our sights set firmly on high value growth markets, like China, where the demand for dairy foods is very strong well into the foreseeable future,” said Gary Helou, MG’s Managing Director.

“Our two strategic pillars are operational excellence and innovation. MG is already investing in its manufacturing footprint to provide world class dairy foods to China and south-east Asian consumers. Our innovative new packaging enhances the product’s shelf appeal and is tailored to the local Chinese market based on extensive local customer insights.”

Labelled with ‘100% pure Australian milk’, the packaging features clear consumer messaging about the milk’s country of origin which appeals strongly to Chinese consumers.

“The Devondale range is known internationally for its exceptional quality and safety, which we are clearly communicating on the pack, along with our proud Australian dairy-farmer origins, which is a key selling feature in international markets like China,” he said.

“The recent FTA will improve the competitive positioning of Australian dairy foods into China but dairy farmers must have ownership of the supply chain and brands in order to capture maximum benefit – otherwise value will be lost to others in the chain.”

Mr Helou said MG was focused on capturing the full value of the China FTA, which will deliver higher farmgate returns to its dairy farmer supplier/shareholders.

Source: Devondale Murray Goulburn