New Zealand dairy co-op Fonterra will use Alibaba’s TMall platform to trial online sales of its Tip Top ice cream brand in China.
Distribution will be handled by specialist frozen products distributor Zhuhai Ice Technology.
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 says 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,” says director Kim Ballinger.
“There will be a lot to learn from this trial program. 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.”
Fonterra says research from London research firm Mintel shows that the total market value of ice cream sales in China increased by 90 per cent to US$11.4 billion between 2008 and 2014, but the take-home ice-cream segment Tip Top is targeting is still a relatively small part of the overall category and has room for growth.