2021 is destined to be an extraordinary year. Even at the end of the year, major events in the food industry are still happening.
On December 14 local time, the 150 year old Royal Netherlands fisland (hereinafter referred to as fisland) officially announced that it would conduct a strategic review of the business of its well-known milk powder brand meisujia’er.
Feishilan headquarters made the above statement while announcing a series of resolutions of the board of directors. Snack generation will show you what this major announcement contains.
“Seize the opportunity”
Feishilan said in a circular, Hein Schumacher, the company’s CEO, announced that feishilan is currently seeking strategic cooperation for its meisujiaer infant nutrition business in order to seize growth opportunities. The key markets of global infant formula milk powder, especially the Chinese market, are evolving rapidly. This strategic review aims to seize growth opportunities and ensure the success of meisujiaer’s business.
This announcement confirms a Bloomberg report in January this year. At that time, the report said that feishilan was thinking about the plan for its meisujiaer infant nutrition business because the company was trying to simplify its business. The report also quoted “people familiar with the matter” as saying that feishilan is cooperating with JPMorgan Chase to conduct a strategic evaluation of meisujia, but has not made any final decision on the future of this business.
This evening, the snack agent inquired about this matter to feishilan China. In a statement, the company responded that meisujia’er is the “world’s leading brand of infant formula” under fislan. 100% of meisujia’er infant formula is produced and packaged in the Netherlands. China is an important market for meisujia’er. Royal meisujia’er has a strong development momentum in ultra-high-end categories in recent years.
“During the strategic review period, the strategy related to the brand of Maisu Jiaer will remain unchanged. Feishilan will continue to provide high-quality products and services to Chinese customers and consumers.” The company said.
Statistics show that the “strategic review” mentioned by consumer goods giants in recent years includes a variety of possibilities, such as selling the business as a whole or partially, or stripping it for separate development, IPO, etc. It’s not clear for the time being. More details of this strategic review of fislan.
Statistics show that meisujia’er is one of the largest brands of feishilan. According to the global official website of feishilan, meisujiaer infant formula is sold in 25 countries and regions such as Europe, the Middle East, Asia (including China) and Mexico.
According to Euromonitor International, the infant formula market is expected to grow from US $54.7 billion (about RMB 353.778 billion) last year to US $59.5 billion (about RMB 384.822 billion) in 2022. Last year, the global market share of American Vega was 3.3%, making it the seventh largest formula brand in the world.
After Chen Ge, President of fisland China, took office in 2019, she focused on promoting the efficiency of fisland’s infant nutrition business, promoting fisland to accelerate the repair of ultra-high-end milk powder business, and ensuring the stable supply of Royal Metso Jiaer.
According to the data provided by the company, the sales volume of Royal Meisu Jiaer series has doubled in the past two years, and the sales volume has exceeded 2 billion yuan in 2020; In June this year, the share of Meisu Jiaer brand under fislan ranked first in JD’s self operated milk powder category, with a record share; In tmall (excluding cross-border purchases), the flagship store of Meisu Jiaer ranks first in the transaction amount of the group, ranking first among the imported ultra-high-end milk powder brands.
In fact, it was only in October that fislan announced that the world’s first innovation experience center had landed in Shanghai. At that time, Chen Ge said: “feishilan is full of confidence in the future of the Chinese market, takes root in Huangpu, increases investment, continues to become bigger and stronger, and achieves the goal of 10 billion as soon as possible.”
So why does fislan want to conduct a strategic review of Mercure Kerr?
Behind this is the accelerated transformation of the Dutch dairy cooperative in recent years. In December last year, Mr Philippe announced that the direct and indirect impact of global COVID-19 was necessary to speed up the strategy of “Our Purpose, Our Plan”, which was set up in 2018.
Feishilan said that the goal of accelerating the transformation is to build a future oriented cooperative so that it can operate successfully even under extremely challenging market conditions. The key points of the strategy are to optimize the organization to reduce costs, mainly including optimizing the production network, management level, support services and functions. In addition, we should further simplify the investment portfolio, strengthen the company’s net asset value, and so on.
Xiaoshidai also noted that on the 14th, the board of directors of feishilan announced that simahan would be appointed CEO again and enter the second four-year term from January 1, 2022.
Sybren attema, the newly elected chairman of fisland, pointed out that fisland is in a period of continuous change. Simahan’s re-election as CEO can maintain stability, sustainability and continue to promote the existing strategy. He also believes that he and his leadership team are leading the company in the right direction and successfully achieve its goals.
Snack generation will continue to pay attention to the latest progress of this strategic review.