Fonterra to trial online Tip Top ice cream sales in China through Alibaba's Tmall

Thursday 16th June 2016

Fonterra Cooperative Group is to trial online sales of its Tip Top ice cream brand in China online via Alibaba's Tmall platform.

Distribution will be handled by specialist frozen products distributor Zhuhai Ice Technology, the company said. Tip Top will start selling six flavours of ice cream - vanilla, chocolate, hokey pokey, cookies and cream, Neapolitan and strawberry - in two-litre tubs, and said it is considering offering novelty sticks and bulk scoop products.

"China is Fonterra’s biggest market and this trial is a small way we can add to our offering there," director Kim Ballinger said. "There will be a lot to learn from this trial programme. We know the brand, sales platforms, and product formats will need to evolve to suit consumers’ changing needs. But it is critical to get into the take-home segment early, get our systems up and running and learn what consumers want so we can quickly capture opportunities as they emerge."

The company said research from Mintel, a London-based research firm, showed the total market value of ice cream sales in China increased by 90 percent to US$11.4 billion between 2008 and 2014, but the take-home ice cream segment Tip Top is targeting remains a relatively small part of the overall category and has room to grow.

(BusinessDesk)

BusinessDesk.co.nz

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