“Fahrenheit 212 zeroed in on a great but unused piece of Fonterra technology and elevated it into a compelling consumer product. We were then able to go from our back shelf to winning on the shelf.”
Kate Ormerod, Brand Manager
THE BRIEF
New Zealand is the largest net exporter of dairy-based products in the world. Fonterra Dairy is its predominant player with $12 billion in annual revenues. Global demand for dairy, however, has been declining. Increasing pressure from Fonterra stakeholders (dairy farmers) to increase yield was spurring its consumer brand division to find new avenues for premium, top-line growth.
THE COMMERCIAL OBJECTIVE
Create a $250 million Adult Health product pipeline in existing and new categories, spanning the vastly different markets of Indonesia, Sri Lanka, Singapore, Australia and New Zealand.
THE INNOVATION CHALLENGE
Establish a new Adult Health brand in Fonterra’s most established Australiasian markets.
THE INNOVATION STRATEGY
Fahrenheit 212 surveyed Fonterra’s asset inventory. Fahrenheit 212 uncovered an underleveraged technology – a clear, taste-neutral whey protein isolate – and interrogated that asset. Where would that be valuable? What category is undergoing more augmentation and fortification – with escalating price points – than any other? Water.
A big technology and big business to drop it into makes for a big opportunity. Putting Fonterra’s protein into water posed no technical issues. The challenge, however, was in defining a consumer benefit. Fahrenheit 212 found it in the mirror. More consumers in more markets than ever are concerned with weight control. With this protein and some soluble fiber, water could deliver new levels of satiety. Hunger pangs ¬– banished. Suddenly, a milk company had a role to play in water. Fahrenheit 212’s next innovation: Developing a brand around that benefit. Enter “WH2OLE – the water that quenches your hunger.”
THE OUTCOME
WH2OLE launched in New Zealand in March 2009, providing weight-conscious consumers with a new tool to bridge the hunger gap between meals. Commercial expectations for WH2OLE are high. Stay tuned.