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- From planetary health to start-up pitches: Biofach's 2026 exhibition hall programme
The supporting programme of Biofach 2026 brings trends, knowledge and opportunities for exchange directly to the exhibition halls. From planetary health to start-up pitches and new workshop formats, it offers a diverse experience for the organic community and sets important impulses for the future of the sector. When the organic sector meets in Nuremberg, Germany, from 10 to 13 February 2026, the focus will not only be on products, but also on prospects. Accompanying the Biofach Congress, a wide-ranging programme in the exhibition halls provides impetus for transformation, cooperation and innovation. Trade visitors can look forward to innovations and highlights in the form of lectures, workshops and show cooking demonstrations, covering topics ranging from modern management culture and planetary health to organic food in out-of-home catering. Dominik Dietz, director of Biofach, said: “The stages and special shows at Biofach are places for exchange, inspiration and practical application – right at the heart of the trade fair. Through these formats, we focus on key future and trend topics in the sector, from planetary health and new nutritional concepts to organic food outside the home as the key to the nutritional transition." Where the future of the organic sector becomes visible: The Innovation Stage (Hall 4A) The Innovation Stage in Hall 4A is the stage for trends, start-ups and new product ideas in the industry. Located right next to the innovation stand and in close proximity to the special show International Newcomers & Start-ups , it offers space for pitch formats, panels on current market developments and innovation presentations. One of the highlights is the Biofach Start-up Pitches. The final round of the Biofach Start-up Award 2026 will take place on Thursday, 12 February, from 15:30 to 16:30. On the final day of the trade fair, the Best New Product Awards will be presented on Friday, 13 February, from 13:00 to 14:00. Hub for shopping and exchange: The meeting point BIOimSEH (Hall 7) The meeting point BIOimSEH in Hall 7 serves as a central platform for encounters, exchange and discovery within the independent retail sector. Businesspeople meet exhibitors, establish new contacts and discover exciting – and previously unknown – organic products. For exhibitors, the meeting point offers a high-quality secondary presentation in close proximity to their target group. For buyers, it provides a carefully curated selection of specialist programmes, best-practice examples and networking opportunities. Even companies that are not exhibiting can gain direct access to trade fair visitors here. © NürnbergMesse Further development of the special show 'Experience the World of Planetary Health': From plant-based to zero waste The Planetary Health world of experience in Hall 9 will take on a significantly broader scope in 2026. In addition to its existing focus on vegan products, alternative protein sources and whole foods, it will expand to include further trends such as plant-based, animal foods and zero waste. This brings the question of how sustainable food systems can be conceived holistically and implemented in the market into sharper focus. Manufacturers present products across the relevant categories and demonstrate how health and climate goals can be effectively combined. Philipp Thiel (ÖMA), Anne Baumann (AöL) and Alexander Bauer (Purvegan GmbH), among others, will discuss how the Planetary Health concept is gaining visibility in the retail sector and the role organic stakeholders play in its implementation. The panel discussion, titled ' Stale is a thing of the past: helping to shape and communicate the Planetary Health Diet as a company ,' will take place on 12 February, from 12:00 to 12:45. The focus will be on how companies assume responsibility, build trust and strategically position their contribution to planetary health. New workshop area: Where leadership, collaboration and NextGen become reality Also located in Hall 9, Biofach 2026 is taking a further step towards participation and co-creation. The new workshop area creates a multifunctional space for interactive workshops and hands-on sessions. One example is the series of workshops offered by Iniciato, which re-examine leadership, personal responsibility and collaboration. In the workshop ' Clear framework, more freedom: How structure strengthens self-reliant teams ' (10, 11 and 13 February), Christoph Spahn, Barbara Sennholz-Weinhardt and Johanna Buß demonstrate how clear roles, transparent expectations and comprehensible decision-making processes can relieve teams and promote self-reliance. Additional sessions will address topics such as constructive error culture and the question of how self-management can be successfully implemented in everyday working life. The programme will be complemented by the “Focus on NextGen” networking event on 12 February, from 11:30 to 12:30, bringing together HR developers and decision-makers to discuss the next generation of leaders. New format for kitchen practice and current market data strengthen organic products in out-of-home catering (Hall 6) The special show Organic Out of Home in Hall 6 demonstrates how organic food can become a tangible lever for change in community catering. It is aimed at kitchens, canteens and businesses seeking to increase their use of organic food despite cost pressures and skills shortages. The focus is on practical concepts for the hotel and tourism industry, new products and smart logistics solutions, as well as digital tools for sustainability management. In the show kitchen, manufacturers present live demonstrations of dishes that deliver both flavour and practicality in everyday operations. Highlights include daily live cooking sessions with chefs such as Max Korschinsky and Estella Schweizer, alongside specialist talks on the organic AHV market. Initial findings from a market study conducted by AMI and Ecozept will be presented on 12 February from 15:00 to 16:00, providing insights into organic market share, structures and price developments in the out-of-home catering sector. These findings are expected to provide important impetus for the wider debate on the food transition. A new format for kitchen managers and catering decision-makers will also debut in 2026, featuring practical presentations and panel discussions on organic product qualities, implementation in commercial kitchens and the new Bio-AHVV (Organic Agricultural and Foodstuffs Ordinance). © NürnbergMesse Quality under the microscope: Experience the World of Olive Oil (Hall 4) At the special show Experience the World of Olive Oil in Hall 4, producers, retailers, buyers and restaurateurs come together to explore the quality, origin and sensory characteristics of olive oil. During blind tastings, trade visitors themselves select the best olive oils at Biofach, which are recognised with the Olive Oil Award. The exhibition will be accompanied by expert lectures and tastings, including ' Olive Oil in Sophisticated Gastronomy ' with Sebastian Kunkel (Wednesday, 11 February, 12:00 to 12:45) and ' Extra Virgin: A Journey into Today’s Quality Production ' with Duccio Morozzo della Rocca (11 February, 14:00 to 14:45). Professor Stephan Schwarzinger (University of Bayreuth) will take a scientific look at authenticity in his presentation ' Trading olive oil without counterfeiting?! ' on 11 February, from 16:15 to 17:00. The Olive Oil Awards ceremony will be held on Thursday afternoon. For more information and to plan your visit, please visit the Biofach website here .
- Bob’s Red Mill expands baking mixes portfolio with Brown Sugar Blondie launch
Bob’s Red Mill has launched a new Brown Sugar Blondie Baking Mix in the US, expanding its Signature Blends range as demand grows for premium, convenience-driven baking products with clean label credentials. The new mix, priced at $4.59, requires only three additional ingredients and is positioned as a shortcut for home bakers seeking indulgent results with minimal preparation. The product is certified Non-GMO Project Verified and features brown sugar and butterscotch flavour notes, aligning with continued consumer interest in nostalgic and dessert-inspired flavours. The launch reflects Bob’s Red Mill’s broader strategy to capture value in the ambient baking aisle by extending beyond core flours and grains into higher-margin prepared mixes, a category that has seen renewed interest as shoppers balance scratch cooking with time-saving formats. Distribution has begun at Amazon, Kroger, Wakefern and Ahold-Stop & Shop, with Walmart and Wegmans scheduled to add the product in March, giving the brand broad national coverage across grocery, mass and e-commerce channels. Baking mix innovation has increasingly focused on reducing preparation steps while maintaining ingredient transparency, as brands seek to differentiate from private-label offerings and compete for shelf space in a crowded category. Bob’s Red Mill, an employee-owned company best known for whole-grain flours, cereals and baking ingredients, has been gradually broadening its mix portfolio to appeal to younger and time-constrained consumers without diluting its natural and minimally processed positioning.
- Carlsberg to exit Tibet joint venture, selling stake in Lhasa Brewery
Carlsberg has agreed to sell its 50% non-controlling stake in Lhasa Brewery to its local joint venture partner, Tibet Development, marking the brewer’s exit from one of its smallest and most peripheral Asian investments. The Danish brewer says that it has signed final agreements for the transaction, which remains subject to regulatory and corporate approvals to be obtained by Tibet Development. Financial terms were not disclosed. Lhasa Brewery, founded in 1988 in Tibet’s regional capital, has operated as a joint venture since Carlsberg entered the business in 2004. The stake represents a minority, non-controlling interest and has limited strategic relevance within Carlsberg’s current Asia portfolio, industry sources said. The divestment reflects Carlsberg’s broader focus on simplifying its footprint and concentrating capital on markets and brands where it holds scale, control and clearer long-term growth prospects. In China, the group has increasingly prioritised premium beer segments and urban markets, while reducing exposure to lower-margin or structurally complex assets. Carlsberg has previously said it is reviewing non-core operations across its global portfolio as part of a wider effort to improve returns, streamline governance and sharpen its geographic focus. The sale also underscores the challenges international brewers face in operating minority joint ventures in China, where regulatory complexity, local market dynamics and shifting consumption patterns have made smaller regional assets less attractive. Carlsberg did not say when it expects the transaction to close, noting that completion will follow once all required approvals have been secured. The company remains one of the world’s largest brewers, with a strong presence across Europe and Asia, and has been investing in premiumisation, alcohol-free beer and operational efficiencies to support margins amid rising costs and uneven global beer consumption.
- Starbucks expands UK RTD range with limited editions as flavour innovation drives chilled coffee growth
Starbucks is launching two limited-edition ready-to-drink (RTD) chilled coffee products in the UK in early 2026 under its ready-to-drink partnership with Arla Foods, as the brand looks to sustain growth in a competitive RTD market driven by flavour innovation and premium positioning. The two products – a Caramel Brownie-flavoured Frappuccino and a pistachio-inspired Chilled Classic – will roll out across major UK grocers, including Tesco, Sainsbury’s, Morrisons and Iceland, with a recommended selling price of £2.20. The launch underscores Starbucks’ strategy, executed through Arla Foods, of using limited-edition SKUs to generate incremental sales and maintain shelf visibility in the chilled coffee aisle, where volume growth has moderated but value growth has remained more resilient. The pistachio-flavoured Chilled Classic marks the first time the flavour has appeared in the Starbucks RTD portfolio produced by Arla Foods, following strong seasonal demand for pistachio beverages in Starbucks’ coffeehouses. The move reflects a broader trend of translating successful foodservice flavours into retail formats to reduce innovation risk. The Caramel Brownie Frappuccino, released under the 'Sip of Joy' branding, refreshes an established flavour with new packaging rather than a reformulation, a tactic increasingly used by manufacturers to extend product lifecycles while managing development and production costs. Arla Foods, which produces and distributes Starbucks RTD beverages across Europe, has positioned chilled coffee as a core growth pillar within its branded dairy portfolio, as it looks to capture value from premium, convenience-led consumption occasions. The launches come as RTD coffee manufacturers compete for space in grocery chillers amid rising input costs, cautious consumer spending and tighter retailer scrutiny of rate of sale. Limited editions have become a key lever for driving trial and supporting promotional calendars without permanently expanding core ranges.
- Marzetti to acquire Bachan’s Japanese barbecue sauce brand for $400m
The Marzetti Company has agreed to acquire Japanese barbecue sauce brand Bachan’s in a deal valued at $400 million, as it looks to strengthen its position in the global sauces and condiments market. The agreement covers the purchase of the Bachan's, which generated approximately $87 million in net sales in the 12 months to 31 December 2025. Marzetti said the deal will expand its sauces portfolio and create additional growth opportunities through its existing retail and foodservice distribution network, supply chain capabilities, and marketing and culinary expertise. Founded on a multi-generational family recipe, Bachan’s is known for its clean-label Japanese barbecue sauces. Marzetti's CEO, David A Ciesinski, said the acquisition would strengthen Marzetti’s presence in the “dynamic condiment and sauce category,” highlighting Bachan’s origins as a family recipe developed by founder Justin Gill. He added that Marzetti plans to broaden distribution, support continued product innovation and explore extensions into new channels and adjacent categories. Gill added: “Over the last several years, building Bachan’s has allowed me to fulfill my childhood dream of bringing my family’s sauce to market. My team and I have been working incredibly hard to deliver on this vision of building the first iconic Japanese-American flavor brand, and I am honoured to partner with The Marzetti Company for the next stage of making my vision for Bachan’s a reality.” The transaction will be funded through a combination of cash on hand and additional financing and is subject to customary closing adjustments and regulatory approvals. The acquisition is expected to close before Marzetti’s fiscal year end on 30 June 2026.
- China cuts tariffs on EU dairy imports, easing pressure on cheese and cream exporters
China has sharply reduced provisional import tariffs on European Union dairy products, easing pressure on exporters of high-value cheese and cream after weeks of industry lobbying and amid signs of a broader de-escalation in EU-China trade tensions. The revised measures cut the maximum duty on EU dairy imports to 11.7%, down from rates of up to 42.7% imposed in December following an anti-dumping and anti-subsidy investigation by China’s Ministry of Commerce, according to notifications sent by the European Commission to industry groups. Several major European dairy producers, including Denmark’s Arla Foods and France’s Lactalis, will face a lower tariff rate of 9.5%, industry bodies said. The duties were introduced after China alleged that subsidised EU dairy exports were depressing domestic prices, particularly in cheese and high-fat cream. European dairy groups have strongly disputed the claim, arguing that EU support measures comply with World Trade Organization rules and have no material impact on Chinese markets. China is the world’s largest importer of dairy products and ingredients, making market access critical for European exporters as they seek outlets for value-added products amid slower demand growth at home. The European Dairy Association said it would meet with the Commission this week to discuss next steps, urging Brussels to prioritise market access while avoiding retaliatory measures that could further disrupt global dairy trade. The tariff cuts come against the backdrop of a broader easing of trade friction between Beijing and Brussels, following earlier Chinese investigations into EU pork and brandy exports, widely seen as retaliation for EU tariffs on Chinese electric vehicles. China’s dairy investigation, launched in August 2025, is due to conclude later this month, with a final ruling yet to be formally published. Industry groups say uncertainty over the outcome continues to weigh on export planning and pricing. A European Commission spokesperson said the original tariffs were based on “questionable allegations and insufficient evidence”, adding that Brussels would continue to defend the bloc’s dairy sector against what it views as unjustified trade measures. For EU dairy producers, the revised tariffs reduce immediate cost pressure but stop short of restoring full competitiveness in a market that remains strategically important for premium cheese, cream and ingredient exports.
- Capri-Sun adds Mango & Passion Fruit flavour
Capri-Sun is expanding its UK product portfolio with the launch of a new Mango & Passion Fruit variant, as the drinks maker looks to drive volume growth through flavour innovation while doubling down on zero added sugar formulations and low-carbon packaging. The launch reflects continued demand for tropical flavour profiles in the juice and soft drinks category, particularly among families seeking variety alongside cleaner labels. Capri-Sun said the product contains no artificial flavours or preservatives and has zero added sugar, aligning with tightening regulatory scrutiny and sustained consumer pressure on sugar content in children’s and family-oriented beverages. The company is also positioning packaging as a key differentiator. Capri-Sun said its pouch format has the lowest carbon footprint of all beverage packaging formats currently available and is fully kerbside recyclable in the UK, supporting retailers’ sustainability targets and Scope 3 emissions reporting. While best known as a children’s brand, Capri-Sun has increasingly focused on reformulation and packaging innovation to protect market share in a competitive ambient juice and soft drinks market facing declining per-capita consumption and rising costs. The Swiss-owned company sells more than 6 billion pouches annually across more than 100 countries, making it the world’s largest pouch-based juice brand. In the UK, the brand has maintained strong distribution in grocery and impulse channels, where manufacturers are competing for limited shelf space through incremental innovation rather than line extensions with higher sugar content. Capri-Sun said consumer testing showed the Mango & Passion Fruit variant outperformed competing products on taste, and the company expects the launch to support early-year sales momentum. The new flavour will roll out nationally across major UK supermarkets and wholesale channels from 5 February, sold in Capri-Sun’s 330-ml resealable pouch.
- AG Barr buys Fentimans and Frobishers for £50m as it doubles down on premium soft drinks
British soft drinks maker AG Barr has agreed to acquire premium mixer brand Fentimans and juice producer Frobishers in deals worth more than £50 million, strengthening its exposure to the fast-growing adult soft drinks market as alcohol consumption continues to decline. Barr, best known for its flagship Irn-Bru brand, said it would buy Hexham-based botanical drinks company Fentimans for around £38 million, funded through a mix of cash and debt. The company has also completed the £13 million acquisition of Devon-based juice brand Frobishers, which closed at the end of its financial year in January. The acquisitions mark a further shift in Barr’s strategy away from reliance on mainstream carbonates and towards higher-margin, premium and functional beverage categories, a segment attracting growing consumer and retailer demand. Both brands operate in the adult soft drinks market, which is benefiting from the consumer trend of reduced alcohol consumption. Barr says the deals will support growth through portfolio diversification and create opportunities for cost synergies across production, distribution and procurement. The move comes as Barr reported a strong financial performance, with annual revenues rising 4% year-on-year to approximately £437 million. The company said it expects a double-digit increase in annual profits, underpinned by solid performances from brands including Rubicon and energy drink Boost. Irn-Bru, which remains Barr’s largest brand by volume, delivered modest growth in the second half of the year after a flat first half, while a decline in its Funkin ready-to-drink cocktail range reflected broader softness in the alcoholic and alcohol-adjacent categories. Founded in 1875 and headquartered in Cumbernauld, Scotland, AG Barr has been expanding beyond traditional soft drinks into plant-based milks, health shots and low-calorie products as manufacturers respond to tightening health regulations and shifting consumer preferences. Fentimans, known for its botanical brewing process and premium mixers, is positioned in the fast-growing non-alcoholic and low-alcohol occasions market, while Frobishers brings a long-established presence in juices, sparkling drinks and cordials. This combination gives Barr greater access to on-trade and premium retail channels, where margins are typically higher. Chief executive Euan Sutherland said Barr had laid “strong foundations for future growth” and entered the new financial year with momentum across its core brands and new product pipeline.
- Kraft Natural Cheese launches high-protein cheese sticks for on-the-go snack market
Kraft Natural Cheese has introduced a new line of high-protein cheese sticks in the US, as consumer demand for convenient, protein-rich snacks continues to drive category growth. The Kraft Natural Cheese Protein Sticks, available in Mild Cheddar and Pepper Jack varieties, contain 17 grams of protein per serving and 50% less fat than the company’s traditional cheese stick products. The snacks are designed for versatility, including lunchboxes, office snacking, as well as pre- or post-workout consumption. Amanda Vaal, director of brand marketing at Lactalis Heritage Dairy, says the launch responds to consumers seeking snacks that combine familiar taste with functional benefits, including high protein content. The move positions Kraft to compete in the fast-growing segment of protein-enriched and on-the-go dairy snacks, which has seen increasing uptake among health-conscious and active consumers. Convenience formats such as individually packaged sticks are also appealing to retail and foodservice buyers seeking portable, single-serve offerings. The protein sticks build on Kraft’s long-standing presence in the natural cheese market and reflect broader trends in the dairy sector, where manufacturers are reformulating products to deliver added nutritional benefits while meeting consumer preferences for taste, convenience and portion control. Kraft Natural Cheese Protein Sticks are now available at select retailers, including Target, Publix, Food Lion, Hy-Vee, ShopRite, Meijer and Amazon Fresh, with additional retailers to follow.
- Why OT security should be the top priority for European food manufacturers in 2026
Lucas Majewski As European food and beverage production becomes increasingly automated, the risk of cyberattacks on operational technology is growing. Lucas Majewski of Mitsubishi Electric Factory Automation explains why protecting legacy and modern production lines is now a critical priority for manufacturers seeking to safeguard output, compliance and reputation. The average life of an automated production line can range from ten to 20 years, depending on the nature of the produce. This is often facilitated by the fact that, in general, automation equipment is inherently reliable and can last for many years. For many production managers in the food industry, the biggest worry has often focused on obsolescence – ie. ‘will I have access to the necessary spare and replacement parts to maximise uptime throughout the operational lifespan of this production line?’ However, concerns over the cybersecurity credentials of the operational technology (OT) equipment are quickly catching up. After all, recent data paints a worrying picture. The European Union’s cybersecurity agency ENSIA reported that 18% of cybersecurity incidents between July 2024 and 2025 were aimed at OT systems, while the European Commission perceived cybersecurity threats to be the most relevant threat to the EU’s food supply in 2025. Let’s put this into context for manufacturers. It’s only relatively recently that automation equipment has had to comply with cybersecurity requirements, such as IEC 62443-4-2, which came into force in February 2019. As a result, there is likely to be a high volume of legacy automation equipment installed throughout European food production sites, which will not have the same level of built-in cyber resilience as recent generations of products. Cybersecurity as a producer's priority So, while IT departments may have taken action to implement a robust defence at the enterprise level, the OT layer may still pose a significant risk. After all, if a potential hacker wanted to cause maximum disruption to a manufacturing plant, the attack would most likely target the production area. Get control of the OT layer, and you have effective control over the whole plant. Legislation is thankfully catching up with the threat level. Food production, processing and distribution were added to the list of ‘important entities’ when the NIS2 Directive text was adopted in 2022. Planned changes to the EU’s Cyber Resilience Act will also come into force in December 2027. This will help to further protect businesses across Europe when purchasing software or hardware products with a digital component. While this will undoubtedly help end-users in the food industry, it is primarily aimed at strengthening the cyber resilience of new installations. For legacy lines, there are several measures that food manufacturing teams can implement to protect against an ever-increasing OT cyber threat. Steps to enhance security The first step is to undertake an OT cyber risk assessment. This should help provide a clear overview of the specific vulnerabilities within your plant’s existing automation equipment and network infrastructure. It will act as a critical step to ascertaining which devices are on the industrial control network and how they connect. This plan should also include recommendations on suitable remedial actions. Once the OT cyber risk assessment is complete, the next step is to deploy a strategic plan that covers not only the remedial actions from the risk assessment, which are likely to largely address legacy issues, but also outlines future best practices given the constantly evolving nature of OT cyber threats. While each plant will require its own tailored strategy, there are some common themes: Applying a ‘defence in depth’ strategy helps to harden the organisation’s cyber security posture, detect threats and deter potential hackers as quickly as possible. This involves approaching OT cybersecurity in a layered approach, with a zero-trust framework and strict control over who can access the devices, knowing exactly what is on the OT network and how the devices interconnect, and being able to detect and report suspicious anomalies and respond quickly. Within this layered model, modern OT security technologies play a critical role by providing continuous visibility into industrial assets, deep analysis of industrial protocols and real-time identification of abnormal behaviours before it impacts production. Organisations must implement a comprehensive framework that combines strategic detection and prevention capabilities with network segmentation and asset-centric protection to reduce exposure and limit lateral movement. By incorporating Moving Target Defence techniques, organisations can dynamically harden critical systems and disrupt adversary activities. Secure remote access, built on zero-trust and Moving Target Defence principles, enables essential maintenance while preserving operational integrity, availability and safety. The overall strategic plan should also include specific incident response plans to ensure key stakeholders are as well-prepared as possible in the event of an attack. Finally, the overall response must be regularly reviewed to ensure it remains fit for purpose. Ultimately, while there is never a 100% guarantee against all threats, a defence in depth approach enables an organisation to quickly detect a breach and recover from potential cyber damage, ensuring the organisation remains resilient and keeps the commercial and reputational damage to a minimum.
- ITS announces over £10m investment in major UK natural flavour manufacturing expansion
Independent flavour house ITS has unveiled plans for a significant expansion of its UK operations with the development of one of the largest natural flavour manufacturing sites in the country. The Newbury-based business has acquired an 8.2-acre industrial estate west of Newbury, close to Hungerford, benefitting from strong transport links to the M4 motorway. The company will invest more than £10 million in the site and its development, with completion expected within the next 12 to 18 months. The new Hungerford facility will undergo a full redevelopment of the existing factory, alongside the extension and modernisation of office space. Once operational, the site will provide up to 20 times more production capacity for liquid and powdered flavours compared with ITS’s current Newbury operation, as well as scalable manufacturing for natural extracts and compounds. The scale of the site also allows for future expansion as the business continues its rapid growth trajectory, with ITS currently reporting year-on-year growth of approximately 35%. Existing production and product development facilities in Newbury will remain fully operational and unaffected by the move, with both sites currently undergoing their own expansion programmes. The development is also expected to create new employment opportunities across Swindon, Marlborough, Hungerford and Newbury, as ITS expands its workforce to support increased production capacity. Founded in 2009 by Mike Bagshaw, ITS was established with a mission to bring innovation and creativity to the flavour sector. The company now employs 40 people and supplies natural flavours across the food and beverage industries. Bagshaw said: “This investment is a major step forward for I.T.S, which began at a kitchen table 16 years ago. My mantra has always been to be ‘brave’, scale big, have fun and stay independent. Our goal is to become the world’s most-loved flavour house, delivering exceptional flavours and service to our customers.” The expansion marks a significant milestone in the company’s growth strategy, positioning I.T.S as a major UK manufacturing hub for natural flavours while maintaining its independent, innovation-led ethos.
- Fonterra begins $45m butter plant expansion as it shifts to higher-value dairy products
New Zealand dairy group Fonterra has begun construction on a NZ 75 million ($45 million) expansion of its butter plant at the Clandeboye site in South Canterbury, as the co-operative looks to lift returns by increasing output of higher-value milkfat products. The project forms part of Fonterra’s plan to invest up to NZ 1 billion over the next three to four years in manufacturing upgrades aimed at improving product mix, operational efficiency and resilience across its processing network. The Clandeboye expansion, first announced in October 2025 , will add a new butter production line, increasing capacity and enabling the site to produce a broader range of butter formats, including Halal and Kosher-certified products. Fonterra says the additional flexibility is intended to support demand from international ingredients customers and foodservice operators. Construction entered a new phase in January, with demolition and groundwork underway ahead of the build of a new butter processing hall. Installation of new piping linking milk treatment to the butter line is expected to begin shortly, while key equipment is being assembled off-site. The exterior of the expanded facility is due to take shape by April. The company says commissioning of the new line is scheduled for early 2027, with first commercial production expected in April that year. Fonterra has increasingly prioritised value-added dairy categories such as specialised milkfats and ingredients as it seeks to improve earnings volatility and reduce reliance on bulk commodity products. Butter and anhydrous milk fat are among the co-operative’s higher-margin offerings, particularly in export markets. The investment is also aimed at strengthening Fonterra’s South Island manufacturing footprint by increasing processing flexibility and reducing operational risk. The project is expected to create 16 new roles at the site.












