Lion eyes increased Chinese dairy exports through Guangdong partnership

Australia’ biggest fresh dairy company, the Japanese-owned Lion, has announced a second marketing partnership in China.

The Australian and others report that it will partner with Canton American Flower Lounge to sell Pura regular and UHT milk and other dairy brands in Guangdong province (population 104 million).

Its Pura brand has lost market share in Australia in the last year and is under pressure from cheaper, private label supermarket milk.

The Australian Financial Review reports that Chinese consumers, unlike local shoppers, are happy to pay extra for premium Australian brands.

"They are very thoughtful consumers about the nutritional value of what they consume, and are interested in the authenticity of the brand," managing director of Lion’s dairy business in Asia, Duncan Makeig, told The AFR.

"They'll get online and check our Australian websites … they want to eat what Australians consumers eat and drink, and they don't want to buy these made-up brands with a kangaroo on it – they want the authentic Australian product."