Freedom Foods targeting Chinas cereal category

Freedom Foods targeting China's cereal category

Australia's Freedom Foods Group has outlined plans to launch breakfast cereal products in China in a bid to tap into what the company says is a growing market for oat-based cereal products.

Freedom Foods is to roll out oat-based clusters and muesli lines under its UHT dairy milk brand So Natural early next year. So Natural is one of clutch of milk brands Freedom Foods markets in China.

The company said the Chinese market for oat-based products is "expected to grow at a fast pace" and taking So Natural into the category would lead to opportunities for cross-promotion with its milk lines.

Earlier this month, Freedom Foods launched cluster and muesli products in China under the Arnold's Farm brand the company attained through its acquisition of Australian oat-based cereal and snacks business Popina Foods. The deal closed on 1 December. Freedom said in October it had secured a deal to buy the business for A$35m (US$25.4m).

Last month, Freedom Foods signed a memorandum of understanding with JD Worldwide, the platform launched this year by Chinese e-commerce retailer, to develop the online presence of the company's brands in the country. Freedom Foods also launched a flagship store on Alibaba's Tmall International platform.

In the background, Freedom Foods plans to invest in its production of oat-based products at the Popina site, which the company says are "at capacity".

The capacity is expected to be installed by the middle of next year.