Domestic butter now separate

Press, 2 March 1984, Page 18

Domestic butter now separate

The Dairy Board has handed over its domestic butter marketing responsibilities to a new company. To be called Buttermark, the company will operate independently of the board’s export marketing structure and will deal with all aspects of butter marketing within New Zealand from the producer to the distributor, retailer and consumer. “By separating local market butter from our broad marketing operations we are recognising not only the importance of the home market, but the role of this superior natural food,” the chairman of the Dairy Board, Mr Jim Graham, said. Buttermark’s main aim is to strengthen consumer awareness of butter’s qualities, and to introduce improved packaging, branding and product innovation. Next to the United Kingdom, the New Zealand market is the board’s second largest, taking 40,000 tonnes a year. While the board’s main emphasis is in exporting of butter, Mr Graham says Bdttermark will give the appropriate emphasis to the domestic market. “Buttermark will have a strong management structure with top level consumer marketing skills,” said Mr Graham. “Butter sales were stable until the . introduction of margarine about 12 years ago, but have been slipping ever since. There are also misconceptions about butter’s effect on health and these have undoubtedly affected our market. Buttermark will address these problems through a positive advertising and educational programme. “While butter is a fairly basic commodity, lifestyle changes in New Zealand have indicated the need for a new marketing approach. The board realises this and, as a result, new product development will be given increased emphasis. Planning is already under way in this area and the first new product is expected to be released within a matter of months.” Industry sources say this will probably be some sort of spreadable butter. Mr lan Willetts, from Auckland, has been appointed general manager of Buttermark. Mr Willetts has held senior marketing and managerial positions with a number of large companies including Unilever, Cerebos Foods, New Zealand Wines and Spirits, Kelloggs and The Sales Machine which provides a specialised sales promotion service to consumer products, industrial and service companies. Mrs Catherine Saunders, who has been responsible over a number of years for the board’s cheese promotion campaigns, is to act as a consultant to Buttermark. The new company will be based in Auckland.