Freedom spreads its wings in China

Freedom initially launched into the Chinese internet retail market in September, selling ultra high temperature (UHT) treated milk packed under the So Natural, Vitalife and Simply White brands.

It also sells direct to customers through the Tmall site and has achieved such a strong response in online retailing it is now expanding to promoting non-dairy UHT lines, including rice and oat milk, cereals and snacks in China.

Freedom has also just launched its newly acquired "Arnold's Farm" oat cluster and muesli products in China hot on the heels of completing a $35 million purchase of the brand's parent company Popina Foods Group.

JD Worldwide will also establish a branded flagship store for Freedom products as part of its online platform, significantly increasing Chinese distribution for the company's various lines.

The latest moves come as Freedom wraps up a busy year, including cashing in the remainder of its once dominant stake in the fast-growing A2 Milk Company for more than $100m in October and November.

A2, which is also enjoying thriving demand in China for its Platinum branded infant formula and fresh milk sales flown direct from its Australian packing plants, was founded in New Zealand but gained its foothold locally under the auspices of Freedom management.

The A2 company, now based in Australia, is listed on the stock market in NZ and Australia, where recent significant increases in its share price convinced Freedom bosses to take advantage of the opportunity to sell out, using the funds "for activities and businesses where the group has either 100 per cent control or a significant controlling stake".

Earlier this month, Freedom completed the $35m acquisition of the Victorian-based oats cereal and snack food company Popina Foods, a specialist in cluster format cereal products at Dandenong.

Freedom has committed to significantly expanding the Dandenong plant's cereal production capacity so its products can be sold into China, and elsewhere in South East Asia.

"The market for oat-based cereal products, including cluster, premium muesli and porridge formats, is expected to grow at a fast pace, driven by demand for existing product lines and changing consumer patterns," said managing director Rory Macleod.

"With our newly Popina product range and capabilities, Freedom has fast tracked the launch into China of our 'Arnold's Farm' products to coincide with the new year promotional periods.

"Initial shipments of products for this promotional period commenced this week."

Freedom's other processing acquisition, a grain mill at Darlington Point in the NSW Riverina, bought for about $6m in August, will also boost its capacity to service domestic and export customers, including the food service sector.

Ringwood mill gives Freedom a 40pc share of the Australian popping corn processing market plus flour milling capacity, which will be expanded.

The company is also expanding its UHT processing capacity with a new plant at Ingleburn in Sydney by 2017, and has a 10pc stake in the new Australian Fresh Milk Holdings joint venture which bought the 3700-cow Moxey Farms dairy at Gooloogong in July.