NEW ZEALAND –  Fonterra, the global leading dairy nutrition co-operative has launched a corporate venture arm, Nutrition Science Solutions, to invest in the area of nutrition science.

According to Fonterra’s  CEO Miles Hurrell, the company is committed to staying at the forefront of nutrition innovation and creating new value streams for the co-op.

The new venture capital arm will operate as a standalone business within Fonterra with its board and CEO.

During the launch of the corporation, he highlighted Nutrition science as a segment of the global health and wellness category that goes beyond everyday lifestyle and wellness products.

“Given our expertise in dairy science, we committed to exploring the potential for Fonterra to play more boldly in this space,” he added.

He also noted that the developed business includes establishing a corporate venture arm with access to their dairy science and innovation combined with the agility of a start-up.

“NSS will seek out, partner with, and invest in global start-ups who will benefit from access to Fonterra’s dairy science expertise and understanding of the global market,” one of the company’s spokesmen said.

“Fonterra meanwhile will benefit from access to emerging technologies, advancements in science, and novel channels to market provided by start-ups.”

Highlighting the goal of the investment the spokesmen added that the company is aiming at incubating and scaling a portfolio of disruptive ventures by developing the next generation of solutions that combine science, nutrition and technology to make a positive impact on human health.

New Zealand-headquartered Fonterra has also disclosed its first investment through the new arm, spending US$10m for a minority shareholding in Pendulum, a San Francisco-based biotech company making dietary supplements.

Dr Colleen Cutcliffe, the CEO and co-founder of Pendulum, added that the strategic partnership with Fonterra will enable tap into the deep-rooted manufacturing expertise and established global leadership to bring a new wave of microbiome products to market.

“The partnership will see Pendulum and Fonterra establish a presence in global markets, and co-develop and commercialise microbiome products,” he added.

In September 2021, Fonterra set out a new strategy to try to add value to its business through selling off some assets and investing in nutrition science, which at the time Hurrell described as a “high-value growth opportunity”.

In March 2017, Fonterra launched the Fonterra Ventures Co-Lab, an open platform designed to forge potential partnerships with entrepreneurial individuals and businesses.

A year later, Fonterra announced the division’s first strategic partnership with a stake in Germany-based sports nutrition firm Goodminton, a holding company that includes local start-up foodspring

For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.