China Food

Today, the first milk powder of Danone Qingdao factory is officially announced! We had a chat with the top management in China

Two months after the start of the Qingdao milk powder factory, Danone’s “domestic version” nuoyoung new product was finally unveiled.

Today, Danone released its first infant formula nuoyonen 3 in Shanghai. This is also a few years later, Danone once again launched locally produced milk powder products in the Chinese market.

Bruno chevot, President of Greater China and Oceania region of
Danone, said nuoyunen 3 is a “milestone” for Danone’s development in China, adding that in the next five years, Danone will continue to increase its research efforts in China and provide more localization solutions.

Danone early life nutrition in China

Xiaoshidai understands that the target market of this new product will complement that of Atami and imported nuoyonong. It is not difficult to find that nuoyunen 3 has been regarded by Danone as a powerful “weapon” to grab more market share in emerging markets.

Emerging markets

Zhou Zhigang, general manager of Danone early life nutrition in China, said today that nuoyonen 3 Yunhui is the first product developed by Danone open research center, which landed in Shanghai in August last year. It uses “only 10% of the world’s grass fed milk” as the milk source. In terms of product formula design, it also combines the characteristics of Chinese infants’ nutritional needs and strengthens some nutrients.

“It can be said that this is a customized milk powder for Chinese babies.” He said.

It is understood that at present, the new product is planned to be put on the shelves in 2000 or 3000 mother and baby stores in Shandong and Henan, and then it will be launched into nuoyoung’s official flagship store. According to the inquiry of xiaoshidai, nuoyueneng 3 Yunhui series has covered one to three sections, of which the price of the second section is 338 yuan / can.

Zhou Zhigang, general manager of Danone early life nutrition China

When talking about how to cooperate with other imported milk powder products of New Zealand, Zhou Zhigang said that low tier cities are emerging markets with growth potential, and the coverage of imported milk powder products in the first and second tier core cities is higher, while the development of emerging markets is facing challenges, because the supply chain of the latter is very complex, Multi level distribution system is difficult to control.

In terms of target market, nuoyunen 3 is complementary to other imported milk powder products of Danone.

“With the listing of Huihui, we have developed a more advanced digital means that can not only directly face the channel, but also directly face the consumers, which can give us a place in the emerging market.” Zhou Zhigang also said that before the launch of Huihui, with the help of digital distribution system, Atami and imported nuoyonong have made progress in the development of emerging markets.

Xiaoshidai noticed that in fact, at the first quarter performance analysts’ meeting held earlier, Danone has taken the lead in announcing two new nuoyunen milk powder products for the Chinese market, including nuoyunen 3 Huihui, which is produced by Qingdao factory.

According to the conference materials at that time, the selling points of “Yunhui” series produced by Danone Qingdao milk powder factory included “grass feeding milk source” and so on, which were mainly for the mother and baby stores in emerging markets. Another original imported nuoyueneng bean based infant formula is described as its “first super high-end plant based product” and will be sold in major national channels. Recently, nuoyuneng native plant protein milk powder has landed in tmall’s official flagship store.

Juergen Esser, chief financial officer of Danone, also revealed at the first quarter performance analysts’ meeting that Danone is committed to improving the penetration rate of low tier cities and maternal and infant stores in China, and has now entered hundreds of low tier cities in China.

Localization strategy

With the listing of nuoyueneng 3, Danone has also opened a new “Five-Year Plan” for its development in the Chinese market. Xie Weibo said that in the next five years, Danone will further implement the strategy of “made in China, made in China”, continue to build advanced local scientific research and production strength in China, and constantly accelerate the transformation of cutting-edge scientific research achievements into advanced nutrition solutions through localized production.

It is not difficult to find that from the acquisition of Maigao Qingdao milk powder factory in May last year to the establishment of a new scientific research center in Shanghai last July, Danone has obviously accelerated the pace of promoting the localization strategy in China.

Xie Weibo, President of Danone Greater China and Oceania

In this regard, Xie Weibo said that China, as the world’s second largest market of Danone, especially in the context of last year’s epidemic, still maintained a fairly good economic growth momentum, so it is undoubtedly a very potential market for Danone.

When asked whether the Qingdao factory will produce more milk powder products such as special formula and whether Danone will implement more mergers and acquisitions in China in the future, he said that although it is impossible to disclose more details at present, it is certain that Danone will continue to invest to ensure that it has sufficient innovation and R & D capabilities in China“ With this blessing, we believe that new products will emerge one after another, which is a basic trend. ” Xie Weibo said.

Dai Haiwei, vice president of Greater China supply chain and Purchasing Department of Danone New Asia, also said that Qingdao milk powder factory is Danone’s first professional special nutrition factory to produce and supply local market in China in recent years, and it is also one of Danone’s most advanced factories in the world, which also reflects Danone’s value of “in China, for China”, It also reflects Danone’s confidence in the Chinese market. At the same time, considering the geographical location of Qingdao, it will also become Danone’s logistics center in North China.

According to the performance data of Danone in 2020, the sales volume of Danone’s special nutrition business (Note: including early life nutrition and medical nutrition where infant milk powder is located) last year was 7.192 billion euros (about 56.229 billion yuan). Among them, Danone China’s infant formula is close to US $2 billion (now about RMB 12.921 billion).

Senior management of the company also revealed that last year, the Chinese label and English label products of three Danone brands, including etamet, nuoyonen and kerikang, gained more market share, and etamet was described by the company as “the first foreign brand in China’s infant formula market share”.

Prospects in China

However, the trend of low birth rate in recent two years has also brought new challenges to the milk powder industry.

In this regard, Xie Weibo told xiaoshidai that although the number of new students has declined, the company has noticed that Chinese parents’ demand for high-quality infant nutrition products is increasing, and their requirements for products are also improving, and will continue to grow in the future.

“Danone has a history of 50 years of professional nutrition research. We have global resources, local scientific research strength, and understand the diversified needs of the local market. We can transform these combinations into good products.” He said.

At the headquarters level, Danone is also optimistic about the future of China’s milk powder business.

Juergen Esser pointed out at the meeting of performance analysts in the first quarter that although the low birth rate will have a certain impact in the short term, infant nutrition products will still benefit from two major factors: first, the growth of the middle class can improve the product penetration, especially in low tier cities; Second, consumption continued to upgrade, which promoted the growth of high-end and super high-end milk powder.

Now with new domestic milk powder and new local milk powder production capacity, what kind of “new brand” will Danone play in the localization strategy? Let’s see.

Pay attention to “xiaoshidai” (wechat: foodinc) “and reply to” Danone “to see the wonderful news.

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