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New Zealand dairy cooperative Fonterra has said it will discontinue the production of its Anchor A2 milk and organic milk offerings for local consumers.
This pivot aims to concentrate efforts on the rapidly expanding lactose-free dairy segment, which has emerged as the fastest-growing category in the country, following protein.
A company spokesperson confirmed that the decision to phase out the A2 milk range aligns with the co-operative's broader focus on enhancing its Anchor Zero Lacto product line.
This shift follows impressive double-digit growth in sales of the Anchor Zero Lacto 1L Fresh, prompting Fonterra to expand the portfolio to include 2l fresh and 1l UHT formats.
“This strategic move by the co-op’s Oceania consumer business reflects our commitment to meeting consumer demand for lactose-free options,” the spokesperson stated. “While Anchor A2 Milk will no longer be available, consumers can still find A1 protein-free fresh milk from other suppliers.”
On the Anchor A2 Milk website, a statement was given: "We are sad to say that a2 Milk by Anchor is no longer available under the Anchor brand in the New Zealand market".
"We are working through options to make a2 Milk available to our New Zealand consumers again. We do not have anything to share right now but we will provide an update as soon as we can."
The discontinuation of the organic milk range, which occurred in September 2024, was attributed to underwhelming sales performance. This decision underscores Fonterra's intent to streamline its offerings and focus resources on more lucrative segments.
In a related development, Fonterra has entered into a new agreement with The a2 Milk Company. Under this arrangement, The a2 Milk Company will secure a supply of Fonterra’s A1 protein-free milk in the North Island upon completion of its acquisition of Yashili’s Pōkeno factory, expected on September 1 2025.
The agreement also includes provisions for Fonterra to repurchase any unused bulk liquid cream, further solidifying the partnership between the two companies.
The move is expected to strengthen Fonterra's competitive edge in the dairy sector, where consumer health trends increasingly influence purchasing decisions.
