"By taking an innovative partnership approach to production with Apollo Foods, we have been able to open up new opportunities for future brands – and create even more value for our farmers."
Production of a new look, new formulation, "Mammoth" flavoured milk, which contains 40 per cent less sugar and had a shelf life of six months was already under way at the Whakatu plant.
The arrangement would allow both companies to take the lead in their categories and benefit from new technology to supply consumer drinks to the growing market.
"I am absolutely thrilled and privileged to work with Fonterra Brands New Zealand to bring added value beverages to the global consumer – and better still that we are producing it all right here in Hawke's Bay," said Apollo Foods managing director Ross Beaton.
Hastings Mayor Sandra Hazlehurst also welcomed the announcement.
"It's fantastic to see new leading-edge production facilities choosing Hawke's Bay as their location. It cements our beautiful district as a leader in food production."