Fonterra shortlists four for media agency review in Vietnam

Local full-service agency group Dat Viet VAC is believed to have worked on the dairy giant’s media business prior to the review.

Following a round of submissions, Fonterra has now shortlisted OMD, Optimedia and another two local shops for its media account.

Managed by R3, the media review in Vietnam follows a similar process in Sri Lanka where Fonterra is tipped to announce the results of its review there in the coming week.

In December last year, OMD retained most of the New Zealand-based firm’s media business in Indonesia, Singapore, Malaysia, Australia and New Zealand following a review.

According to the company's website, Asia is the second largest consumer of Fonterra’s dairy products after America, making up about 40 per cent of its total sales across the globe.

Japan, China and Indonesia are among the top five international markets. In China, where its distribution network covers approximately 40 cities, dairy consumption is growing by 10 per cent every year.

In other developing markets such as Vietnam, dairy consumption grew from less than 1kg per capita per year in the early-90s to almost 10kg at the start of this decade.

In Malaysia, Fonterra commands a 76 per cent share of the adult milk category through its Anlene brand and 80 per cent share for prenatal dairy products with its Anmum milk powders brand.

Fonterra is also the largest dairy company in Sri Lanka, with a market share of close to 50 per cent.