China Food

Who made young people lose their freedom?

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Jane Eyre’s “way of survival”
The latest financing of Jane Eyre yogurt was led by Dehong capital (DCP). In fact, this is the second time that Dehong capital has sold Jane Eyre yogurt. In March last year, Dehong capital also participated in the round B financing of Jane Eyre yoghurt with a total of 800 million yuan. As for why to invest, Liu Haifeng, chairman of Dehong capital, said: “why do we like Jane Eyre yogurt and adopt a cow? Investing in them is not to make them compete with Mengniu and Yili – but to see their own characteristics – very special products face consumers with the same characteristics.”
the so-called “characteristics” of Jane Eyre yoghurt, namely: no additives, low-temperature yoghurt, catered to the consumption habits of a new generation and occupied the minds of consumers with the advantages of new categories.

back in 2014, Xia Haitong, a 36 year old boy from Inner Mongolia, and his team set up Pucheng dairy in Guangzhou with 30 million yuan. The following year, the first product of “Jane Eyre yogurt” was launched.
before starting his business, Xia Haitong worked in Mengniu for 15 years and became the general manager of the region from the grass-roots level, and served as the general manager of Mengniu low temperature business department for a long time.
when he started his business, there were about 500-600 yogurt SKUs to choose from among the top four brands in China’s dairy market. But it is nothing more than 70% – 90% milk, 8% – 10% sugar, and three or five additives are added at the same time. This also makes Xia Haitong think: “there is no lack of a cup of yogurt in the market, but there is a lack of a cup of good yogurt.”
so he chose “low-temperature yogurt” and “no additives” and launched yogurt products to meet the drinking needs of the post-85s and post-90s Kochi people.
when Jane Eyre yogurt was launched, there were only a few similar products on the market. The “28 principle” of consumer investment holds that when a concept first appears, the first two brands can often firmly occupy the minds of most consumers.
Liu Haifeng said: “Jane Eyre yogurt is the first low-temperature yogurt without additives in China. This concept is deeply rooted in the hearts of the people. Even if many brands imitate it, the first reaction is it.”
but in fact, Jane Eyre is not the first brand to make high-end yogurt in China. As early as 1999, with the positioning of “yogurt aristocracy”, the yogurt brand Caspian optimized and innovated the traditional yogurt cow products, and framed consumers in the high-end white-collar group aged 28-45.
at that time, however, such positioning was so advanced that Cass really began to become famous after 2015.
the rise of Jane Eyre has caught up with the “east wind” of consumption upgrading and the popularization of the concept of healthy diet to a certain extent. According to the data, the market scale of China’s low-temperature yogurt in 2021 has been close to 70 billion yuan, and the growth of high-end low-temperature yogurt Market is particularly significant. The compound growth rate in the past three years has been nearly 30%, and the market share in low-temperature yogurt has increased from 8% to 15%.
another reason that cannot be ignored is Jane Eyre’s precision marketing and channel playing method.
in the early stage, Jane Eyre’s marketing paid great attention to publicity materials. In Jane Eyre’s yogurt formula, there has always been a sentence behind raw milk, sugar and lactic acid bacteria – “nothing else”, which was also taken out by Jane Eyre as the focus of marketing, and even applied for the trademark of “nothing else”.
through this method of constantly emphasizing the ingredient list, Jane Eyre quickly became famous in the group of Bao parents who pay attention to health. In 2016, Jane Eyre took the lead in building a wechat mall, attached great importance to the wechat community and built her own private domain traffic pool. In the late stage of advertising,
focuses on jitter, KOL and KOC, and expands sales tiktok through online promotion.
according to the report of foodplus, Jane Eyre currently ranks second in the category of low-temperature dairy products on tmall platform, second only to Guangming. On the first day of “double 11” on November 1 last year, Jane Eyre yogurt also won the championship in the Gmv ranking of tmall low temperature yogurt. For start-up dairy brands, it is not easy to get through the offline distribution channel under the blockade of dairy giants. According to the foodplus report, Jane Eyre’s core channel is placed in the boutique supermarket, and she has entered the convenience store channel and supermarket hypermarket since 2019.
in the early stage, establishing a joint venture sales company is Jane Eyre’s core practice. In the past few years, Jane Eyre has not only piloted in one city, but also continuously established regional sales companies, which has also become the key for Jane Eyre to open offline channels. The picture of
is from “foodplus”. After the
has passed the power storage period from 2015 to 2018, Jane Eyre has entered a stage of rapid development since 2019. According to several media reports, as of December 2021, the compound annual growth rate of Jane Eyre yogurt revenue has exceeded 100%, and ranks first in the sales of low-temperature yogurt in many supermarkets, member stores, new retail and other channels.

Increasingly crowded track
In fact, China’s high-end low-temperature yogurt Market is opening a cake competition. Among the new forces of yogurt, there are not only Jane Eyre, but also many brands such as Lechun, CASS and Beihai ranch. They compete in the same market on the same track.
the industry believes that the battle started in 2015.
in this year, Jane Eyre launched her first product; French brand Yunuo found the business opportunities hidden under the distrust of the Chinese market for traditional yogurt and launched a series of high-end yogurt claimed to be made of 100% raw milk to the Chinese market; An article entitled “Sanlitun has an extra Lechun yogurt company with wonderful prices” quickly reached 10W + clicks, and Lechun began to become popular on the Internet…
these brands have different destinies.
Lechun was once the darling of capital – in 2018, it obtained a round B financing with an amount of hundreds of millions of Yuan led by Coca Cola. However, because it failed to deal with the problems of supply chain and channels, and the product pricing was too high, Lechun did not open the popular consumer market.
while Yunuo was unable to cope with the rapidly changing environment in the Chinese market due to its poor adaptability in localized operation in the Chinese market, and its business in China was finally acquired by Tiantu investment.
in contrast, “Beihai Ranch” has a momentum of catching up from behind.
in April 2018, Beihai ranch, 100% owned by Yuanqi forest, was established and began to fight in the yogurt track. In June of the same year, its products were officially put on sale.
continues the playing method of “vitality forest”, and Beihai ranch is popular with the selling points of “0 sucrose, low calorie and high protein”. With the continuous upgrading of R & D, production and sales strength, its market share continues to expand. In 2020, Beihai ranch achieved a year-on-year increase of 167%.
in just a few years, the yogurt displayed on the low-temperature display cabinets of supermarkets and convenience stores has changed from the “screen dominating” situation of affordable yogurt products such as Mengniu, Yili, Sanyuan and new hope. New brands have sprung up. The price of a single cup has generally risen to 6.8 yuan – 16.8 yuan, and the high-end trend is becoming more and more obvious.
and the high-end of yogurt has not come to an end. In July 2021, blueglass, an offline yogurt brand, completed round B financing, with a financing amount of 200 million yuan. The yogurt drink of this brand costs between 30-50 yuan, which was once joked by netizens as “losing the freedom of yogurt”. According to the flagship store of
blueglass avocado yogurt
Jane Eyre tmall, the price of most of Jane Eyre’s products is between 9.5-11.5 yuan, which is much closer to the people than blueglass.
the “inner roll” of high priced yogurt has also rolled from products to capital. In recent years, Sequoia, Jingwei, IDG, Tiantu, Zhenge, pleasure, Huachuang and other investment institutions have bet on medium and high-end low-temperature yogurt track.
on the one hand, it is because the yogurt market space is large enough, and the competition is far less intense than that of normal temperature milk market. The price of medium and high-end low-temperature yogurt is higher than that of normal temperature milk, raw milk and affordable yogurt. Although currently trapped in cold chain transportation and supply chain problems, the profit margin is not bright enough, but there may be great room for imagination in the future. Shen Meng, executive director of
Xiangsong capital, told all-weather technology: “for capital, it belongs to the standard of high growth, low risk, high brand added value and easy to copy quickly.”
on the other hand, the current dairy giants do not have much layout of high-end yogurt. “Dairy giants are usually integrated businesses, and yogurt is only one of them. As a non core product, they can’t get more resource competition like independent yogurt brands.” Shen Meng mentioned.
medium and high-end and functional yogurt markets are not cultivated overnight. When launching new products, enterprises such as Yili and Mengniu often apply to the distribution mode of large-scale sales, which itself is inconsistent with the positioning of high-end low-temperature yogurt. In contrast, the layout of low-temperature yogurt by dairy giants focuses more on popular affordable products. Therefore, giants and new forces can form misplaced competition.
and this giant has not taken into account the track, which gives a lot of new forces living space.
How to cross two “mountains”
However, the living space of new forces in the medium and high-end low-temperature yogurt Market is not stable.
as the scale of the market continues to increase, large enterprises will not be able to ignore the profit space of this market. When Yili, Mengniu and other enterprises enter the market and use the advantages of capital and channels to launch a price war, it is difficult for independent yogurt brands to hold the market cake they have obtained.
in the face of possible crises in the future, new forces need to maintain their existing position with first mover advantage. At present, the urgent problem to be solved is the two “mountains” of supply chain and cold chain.
when the Gmv of Jane Eyre yogurt in 2021 reached 3 billion, Jane Eyre needs to go upstream and focus on self built factories and pastures, whether in terms of controlling raw material costs, improving the independent voice of the industrial chain or strictly controlling quality.
it is reported that Jane Eyre’s factory forms include self owned factories and factories with in-depth binding and cooperation. Earlier, Jane Eyre mainly engaged in OEM, but in June 2020, Jane Eyre was exposed to the discovery of insect eggs in yogurt (which was immediately clarified), resulting in Jane Eyre being pushed to the forefront of the storm.
in the past two years, Jane Eyre has obviously focused on the construction of supply chain (factory and pasture). According to public reports, all the financing amounts of Jane Eyre A and B are used for pasture construction; The funds of this round C financing will be used for the layout of the company’s upstream supply chain to improve the efficiency of product iteration.
among them, Jane Eyre’s factory in Fengning, Hebei Province (Pucheng dairy Chengde Co., Ltd.) was put into operation in April 2021. In the same period, the foundation of its supporting 10000 head ranch in Yuershan Town, Fengning was laid. It is understood that Fengning factory has 13 fully automated production lines, with a design daily output of 500-700 tons; After 10000 farms are put into operation, the annual output can reach 80000 tons.
at the beginning of September 2021, park Cheng dairy, the parent company of Jane Eyre, announced that it would become the strategic shareholder of austasia, with the shareholding ratio of 5% respectively.
Australia Asia ranch operates 10 standardized dairy farms and 2 beef cattle ranches in China, with about 103000 cows and a total milk production of about 580000 tons in 2020. Cooperation with Australia and Asia can ensure Jane Eyre’s continuous supply of milk to a certain extent.
however, Jane Eyre is not the only new shareholder in Australia and Asia. After Jane Eyre announced her shareholding, Beihai ranch announced that it held 2.5% shares in Australia and Asia, and new dairy also announced its strategic shareholding in Australia and Asia Investment with us $58.4 million (about RMB 377 million), accounting for 5%. A milk war continued.
on the other hand, there are many risks in building a supply chain.
it is unknown whether the huge cost of dairy farming and factory construction will bring down the profitability of the whole enterprise in the later stage. This is also the reason why many new forces need continuous financing. They need to rely on the power of capital to run through the upstream and downstream in advance. Another big mountain of
low-temperature yogurt products lies in the cold chain system.
in the past, China’s low-temperature yogurt was mostly produced by local dairy enterprises, and the sales radius was determined by the transportation radius. At present, the new forces need to look at the whole country, which also poses a high challenge to their cold chain transportation.
photo source: there are not many cases where the network
has been dragged down by the high cost of cold chain transportation. Take the yogurt brand change, which is positioned as a fitness crowd, as an example. According to Shangyin news agency, the cost of its yogurt business before delivery is about 40% of the selling price, and most of it is spent on cold chain transportation after delivery, so that its marketing director once lamented: “it’s equivalent to working for Shunfeng cold chain!” The company’s net profit may not be enough to pay SF’s expenses.
Jane Eyre was also limited by transportation in the early stage of development. Due to the short shelf life, just to meet the needs of some consumers in Shanghai and Beijing, the team often sent yogurt by plane, so that every business in the early stage lost money.
it was not until later that Jane Eyre consolidated the supply chain and controlled the cost from raw materials that this problem was alleviated.
“there are more and more groups focusing on healthy diet in the world. New animal and plant dairy products such as oat milk are constantly favored by the market. Capital sees the huge value potential, and a single yogurt industry can fully support the emergence of several major brands.” Shen Meng thinks.
however, if the new forces of yogurt want to become the next “big brand”, they still need to compete in many aspects, such as milk source, pasture, channel, brand and so on. This is not destined to be an easy war.
Author: Hu zhe; Editor: Luo Lijuan; Source: All Weather Technology (ID: iawtmt), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Foodaily Expo 2022] in line with the original intention of providing the whole value chain and one-stop industrial innovation services for the industry, foodaily Expo 2022 (2022.05.31-06.02, Shanghai) is further upgraded. In addition to the upstream and downstream of the food industry, it also covers and gathers multiple resources such as e-commerce, social media, traffic, channels and capital, aiming to bring you an annual innovation feast. Here, products, content, technology, marketing and other aspects related to food & brand innovation will be presented in the form of “professional exhibition + innovative content + interactive experience”, breaking through and differentiating in the consistent form of industry exhibition.

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