As soon as next year, Chinese consumers are expected to drink the low-temperature milk jointly produced by Coca Cola and Mengniu.
Xiaoshidai noted that the microblog account “Wuhe County People’s government released” said tonight that on the morning of August 4, the signing ceremony of the joint venture of Coca Cola and Mengniu Group for high-end finished low-temperature milk project was held in Hefei, the provincial capital. Lu Minfang, President of Mengniu Group, the investor, and Wang zhenglei, general manager of marketing in Greater China of Coca Cola company, and his party attended the signing ceremony.
It is reported that the total investment in fixed assets of the project is 2.1 billion yuan, which is divided into four phases, of which 500 million yuan is invested in the first phase. The project is planned to be put into production and sales in the third quarter of 2021, bringing a brand-new brand of low-temperature milk to consumers all over the country.
“Relying on the foundation, resources and location advantages of animal husbandry, our county has been planning the project since July 2018. Through active efforts, repeated visits, communication and negotiation, the project was finally settled in Wuhe,” the news said. The project is jointly controlled by Coca Cola China Investment Co., Ltd. and Inner Mongolia Mengniu Dairy (Group) Co., Ltd., and new professional production equipment is invested in Wuhe Zhuding ranch of modern animal husbandry (Bengbu) Co., Ltd. to produce and sell high-end finished low-temperature milk. “
In response to the above-mentioned announcement, Coca Cola’s Chinese side replied tonight that it had no comment.
It was found that the farm was called “the largest single breeding ranch in Asia”. According to the micro signal “Wuhe cultural tourism” published in May this year, there are more than 40000 cows in the farm, and the cows are imported from Australia, Uruguay and New Zealand respectively. At present, there are more than 20000 lactating cows in the pasture, with a daily milk output of more than 600 tons, and each lactating cow can produce more than 60 Jin of fresh milk per day.
According to reports, some of these fresh milk are processed on the spot and made into various kinds of yoghurt, pure milk and other packaging products, which are supplied to supermarkets in bulk. The other part is used to supply raw milk to milk processing manufacturers.
It is worth noting that the signing of the above project is a substantial progress of the joint venture between Coca Cola and Mengniu in China.
Xiaoshidai took the lead in introducing that the newly established joint venture between Coca Cola and China Mengniu Dairy Co., Ltd. was concluded on April 29 this year, which means that the plan of establishing a joint venture between the two sides has been given a “green light” by the Chinese regulatory authorities.
At that time, Coca Cola China told the food agency that the new joint venture would make full use of the advantages of both investors in dairy product research and development, dairy processing technology, brand influence and distribution channels, so as to bring a “new brand of low-temperature milk” to Chinese consumers.
According to public information, Coca Cola has not sold any low-temperature milk products in the mainland market so far. But in foreign countries, Coca Cola company has a series of ultrafiltration milk with fairlife brand. According to data, the retail sales of the brand in 2019 have exceeded $500 million.
In fact, the Coca Cola system is continuing to invest in the Chinese market. According to incomplete statistics, Coca Cola launched more than ten new products in the Chinese market in the second quarter alone.
In addition, xiaoshidai learned from Coca Cola earlier that in the second half of this year, Swire will have six new production lines put into operation in China, with a total investment of 250 million yuan and an additional annual capacity of more than 1.7 billion yuan. Swire Coca Cola China also plans to add a plastic bottle production line in Hubei Province, which is expected to be put into production in May 2021.
After the cooperation between Coca Cola and Mengniu has finalized the production site, what actions will the two sides take next? What brand will be launched in the Chinese market finally? We will continue to pay close attention to snacks generation.