Dairy giant Fonterra has struck a deal with Hastings food and drink manufacturer Apollo Foods to make "millions of litres" of flavoured milk drinks.
Both companies have agreed to install state-of-the-art technology, which produces millions of litres of beverages each year from the Apollo Foods plant in Whakatu.
Although arrangements were commercially sensitive and could not be revealed, Fonterra's NZ managing director of brands, Leon Clement, said Apollo's new operation included innovative beverage filling technology that allows a range of different containers to be produced on site and filled with different products on the one production line.
The technology at the plant provided market-leading quality control and allowed a superior fresh taste experience over an extended shelf life.
A global surge in demand for dairy and fruit beverages presents a fantastic opportunity for both companies, a Fonterra spokeswoman said.