New distribution centre for Fonterra Brands New Zealand at Auckland Airport

Auckland Airport is to build a state-of-the-art new distribution centre for Fonterra’s New Zealand consumer business, Fonterra Brands New Zealand.

Fonterra Brands New Zealand is scheduled to occupy the new premises under a long-term lease from March 2017.

The 11,000sqm facility will enable Fonterra Brands New Zealand to consolidate multiple existing warehouses into a single, multi-temperature space.

Mark Thomson, Auckland Airport’s general manager – property, says the partnership with Fonterra is a welcome addition to Auckland Airport’s growing property portfolio: “We are thrilled to be partnering with Fonterra to provide facilities that will directly benefit its customers. This is a long term relationship that complements our existing asset base and customer mix.”

New facility will reduce complexity in freight movements

Leon Clement, Fonterra Brands New Zealand’s Managing Director, says the business is excited by the prospect of moving to the new facility at the airport as it will consolidate seven warehouses – four of its own and three third parties’ – into one, optimising storage and reducing complexity in freight movements.

Clement said: “Our new distribution centre, which will be purpose built for us, will help us deliver a step change in service to our export and domestic retail and foodservice customers.”

“Having a single dispatch point in Auckland for all our dairy products, except ice cream, will greatly improve the efficiency of our North Island supply chain operation – for example, instead of supplying a customer order from two or three DCs we will be able to supply it from one, reducing movements on busy roads and improving service levels for customers.

“We operate in a high demand category and having the latest warehouse technology will also enable us to meet our customers’ expectations around the product mix they want when they want it.”

Fonterra Brands New Zealand will lease the building from Auckland Airport, but will be responsible for its operation.