Func.Nutrition's "Milk With Attitude" Eyes The World
MEDIA ADVISORY
Monday 16th December 2002
FUNC.NUTRITION'S "MILK WITH ATTITUDE" EYES THE WORLD
A fledgling value-added milk innovator seeking a piece of an $80
billion international market has secured its first outside investment.
Func.nutrition has attracted $600,000 from private dairy sector
investors as it prepares to expand its range of value-added milk
products. Industry New Zealand is also funding the company by providing
up to $100,000 under its Business Growth Scheme, with the money to be
drawn down over the next two years.
This initial capital raising is an important step in func.nutrition's
plans to expand into value-added enhanced-nutrition beverages and
functional foods, meeting a growing demand from consumers for foods that
not only taste good but also boost their health and well-being. The
worldwide market for functional foods is estimated at $80 billion and
growing fast.
Func.nutrition managing director Neil Macintyre says the money raised
will enable the company to complete applied product development and
market test new, extended shelf-life milk-based products in Australia
and New Zealand. Once solid sales and profit success are achieved in
these key markets, the company will raise more capital to expand into
select Asian, and possibly United States markets.
The company's new generation products will be milk-based and marketed
as flavoured nutritional drinks to active consumers seeking natural
dietary supplements needed for sustained sports performance.
A former economist who studied agricultural economics and marketing
at Lincoln College, Mr Macintyre says he always hankered to develop a
premium food product. Milk, with its life-boosting qualities and ability
to be absorbed quickly into the bloodstream, was an obvious choice as a
base for development.
"It's great to be active in an industry that has a very strong
ingredient and process foundations that can support value-added product
development.
"New Zealand has outstanding natural advantages of climate and soils,
excellent dairy farming expertise and process capabilities. Our job is
to combine those resources with growing consumer needs and wants for
better food products."
Func.nutrition has been based at The Icehouse, the country's leading
incubator for high-tech companies, for the past year.
Icehouse chief executive Andrew Hamilton says func.nutrition's
success justifies the incubator's initial confidence in the company as
an entrepreneurial, high-growth prospect.
Five years ago, Mr Macintyre founded func.nutrition's predecessor,
SunElite Foods - best known as the company behind the popular Sun Latte
milk brand, winner of a National Heart Foundation Nutritional Award.
Sun Latte's claims to be "the very best milk" rest on its health
properties and product integrity.
Starting with two litres of fresh non-fat milk, almost a litre of
water and lactose is removed. The result, Sun Latte, is fresh milk that
is low in cholesterol, has natural milk calcium and protein levels 70
per cent greater than standard milk, and less fat and lactose than trim
milk.
Sun Latte is processed and distributed by New Zealand Dairy Foods,
and func.nutrition maintains brand ownership and provides marketing and
key account management.
As func.nutrition prepares to enter new territory, Mr Macintyre
believes the key to achieving value-added success is proper marketing
and appreciating that each consumer market is different.
"The opportunities are enormous - so long as you understand the
eccentricities of the consumer markets you go into.
"We talk generically about consumer markets, but they're
multi-varied, diverse and dynamic. You can eyeball a market and think
you have it sorted out, but six months later it's changed completely."
Mr Macintyre says func.nutrition has the advantage of being small and
nimble in the fast-moving consumer products market.
"We're a lean and keen company - we're able to move quickly to
establish important 'first mover' status in markets, while many larger
companies need more time to gear up for market penetration.
"We work to understand consumer trends and then design products and
marketing programmes that will deliver to those consumers. We are
entirely market-led."
-ENDS-
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