Multinational dairy co-operative Fonterra has established new channel Beverage House within its global food service business to capitalise on the growing demand for tea and coffee drinks.

The move is reported to be part of the company’s strategy to sell milk more quickly by combining in value-added products containing yoghurt, cream cheese and cream.

It will also offer Anchor Food Professionals products to the growing number of modern coffee and tea houses, beverage kiosks and dessert bars.

“Beverage House has mainly been focussed on China so far, but the potential for growth in other markets is huge.”

Fonterra global food service marketing general manager Susan Cassidy said:  “In Asia, consumers are moving from traditional straight brews to drinks with dairy, as they look for a more indulgent way to enjoy their daily fix of coffee or tea.

“This trend was really driven by youth and took off, with people queuing for hours to get the latest creation from their favourite tea house.

“Beverage House has mainly been focussed on China so far, but the potential for growth in other markets is huge. We are now using what we’ve learnt to look at other markets where beverages with dairy are growing in popularity.”

Around 600 million cups of tea and coffee are consumed out-of-home daily in the Asia Pacific (APAC) region, and the number has increased by 22% over the past five years.

Beverage House is set to work alongside Fonterra’s existing food service channels, Quick Serve Restaurants, Italian Kitchen and Asian Bakery.