Today, Land O’Lakes announced a marketing and sales arrangement with New Zealand-based dairy cooperative, Fonterra, that will add new offerings to our foodservice portfolio, particularly in the high-demand and high-growth performance dairy category, which is intended to generate additional revenue for our Dairy Foods business that can be used for future investment in our brand and business.
Specifically, through the new arrangement, we will be able to offer Fonterra’s cooking creams and cream cheese products—two items that Land O’Lakes does not currently manufacture—to existing and new customers in the foodservice sector. Sourced from U.S. dairy producers’ milk, these cream products will help broaden the categories Land O’Lakes is known for, without competing with the products we currently offer.
“As a result of COVID-19, performance products in Foodservice will be of utmost importance to operators. The Land O’Lakes Foodservice Sales team is looking forward to adding Fonterra’s high-performance products to our portfolio, which will enable us to provide an expanded range of solutions to existing and new segments and operators,” Greg Somerville, vice president of sales, Land O’Lakes Dairy Foods, said of the new arrangement.
“We are excited to leverage the knowledge and expertise our two cooperatives have in dairy with a broader portfolio of products designed to help foodservice operators make the most of dairy in their kitchens,” says Catherine Fox, vice president of marketing for Land O’Lakes Dairy Foods.
Fonterra’s desire to work with Land O’Lakes also speaks volumes about the power of our brand and customer relationships here in the United States. Fonterra’s Global Director of Foodservice, Paul Harvey, says the U.S. is not only the largest dairy foodservice market in the world, it is also the most competitive. “While Fonterra has been in the U.S. foodservice market for a number of years, breaking into it at any great scale requires a fresh approach. By working with Land O’Lakes, we will have access to a strong, well-established distribution network and their large customer base,” he added. 
Customer service is always top of mind for Land O’Lakes. In tough economic conditions, it makes it even more important for food manufacturers to be able to provide as many solutions as possible for their customers. The Dairy Foods team is confident our burgeoning relationship with Fonterra will help us deliver just that.