Mengniu and Danone, which have been officially announced as “breaking up”, are making their own efforts in the milk powder market.
Xiaoshidai introduced that the two sides announced the end of this “Sino foreign marriage” that has been maintained for nearly 10 years late last week. Among them, the “property distribution” of infant milk powder has become an important play. According to the announcement, Mengniu will acquire the shares of Yashili held by Danone and plan to privatize Yashili. Danone bought back Domex China from Yashili.
This means that after all the transactions are completed, the milk powder business of Mengniu and Danone may undergo some changes, which also brings more variables to the market pattern. At present, Danone ranks among the top three in China’s infant formula industry, while Mengniu is hitting the goal of 10 billion milk powder.
Xiaoshidai learned today that Danone has also taken action after joining hands with obijia, and has specially formed a team to promote sinking. Let’s take a look one by one.
When the transaction with Mengniu is completed, Danone will have Domex China again. Seven years ago, the company sold this business, which was once brilliant for a while, but was later impacted by Botox Oolong incident, to Yashili.
So, for Danone, why does Domex become “fragrant” again?
“The acquisition of Domex will help Danone further strengthen the local production capacity of infant formula. This will help us further cultivate the Chinese market and better serve Chinese consumers with locally produced products with Chinese labels.” Danone said in reply to the snack generation’s query.
According to the information on Dumex’s official website, the brand has Shanghai Jinqiao production base and early life nutrition R & D center. In addition, Dumex currently holds a number of registered formulas, among which there is no lack of promising sheep milk powder.
As the “secondary formula registration” and the “new national standard” are close at hand, Danone will undoubtedly solve the “neck” problem of formula quota if it wants to have more room to display.
Based on this idea, Danone has previously acquired Maigao and recently reached a strategic cooperation with.
At present, in China, Danone, which mainly focuses on altami and nuoyneng, may calculate so many places?
A senior person in the milk powder industry did not rule out Danone’s conversion of the formula line of more overseas products to local production when accepting the snack agent’s inquiry. “This is expected to save a lot of costs and respond faster to the market”. It is also possible to develop new local brands in China.
Xiaoshidai learned that Danone currently produces Yunhui, a local brand, in its acquired Qingdao factory, but “affiliated” with nuoyoneng brand for marketing in low-level cities. It is not ruled out that Danone will follow the same model after obtaining more local milk powder production capacity in the future.
Previously, Danone executives have repeatedly stressed the need to speed up the new.
For example, Xie Weibo, President of Danone Greater China and Oceania, said in March that the local production of milk powder (in order to obtain the qualification of Chinese milk powder formula registration) is becoming more and more important for accelerating the listing of new products. Danone has also taken actions to speed up the establishment of local supply network, including the recent strategic cooperation with obijia, which will enable it to speed up the provision of Chinese label products in line with the national standard of milk powder.
In fact, after reaching strategic cooperation with obijia, Danone has started integration and hopes to seek growth in the low-line market.
According to a recent internal notice of Danone seen by xiaoshidai today, with the strategic cooperation between Danone and obijia, the company “will open up new business growth opportunities in the new field of sheep milk powder, establish and polish the business model of special supply lines in offline cities, and strive to make a greater breakthrough in the expansion model of offline cities”.
At the same time, the above announcement also announced a number of personnel appointments related to yangzizi brand (Note: owned by obijia). Among them, fan Xindi was appointed as the head of yangzizi business, who will be generally responsible for the marketing and sales of yangzizi business, lead the marketing operation and regional sales team of the headquarters, and gradually achieve performance and the establishment of new models by formulating and implementing channel and consumer plans suitable for offline cities.
In addition, Danone also announced the management list of the marketing team of yangzizi business headquarters and the regional sales team of yangzizi business, including the appointment of Shi Jing as the senior manager of channel marketing, Kan Dan as the SPC Management Manager, Yue Deyu as the business development manager, and the regional sales heads in Zhejiang, Fujian, Guangdong, Hunan, Sichuan and other places.
In addition to the help of obijia’s sinking team arrangement, xiaoshidai also noticed that more details about Danone’s investment have also surfaced.
According to the Changsha Evening News reprinted on the official website of Changsha Government yesterday, on May 11, “Danone innovative nutritional food project” participated in the centralized signing ceremony of the first batch of provincial investment promotion major projects in Hunan in 2022.
“The total investment of the project is 500 million yuan. Through the acquisition of Hunan obijia nutritional food Co., Ltd., we can make better use of its production advantages. At the same time, with the help of Danone’s century long scientific research advantages in the field of professional special nutrition, we can provide more and healthier innovative nutritional food for Chinese consumers. After fully put into operation, we can achieve an annual output value of 1 billion yuan and an annual tax of more than 50 million yuan.” The source said.
Let’s take a look at Mengniu’s new action.
According to Hohhot daily news, yesterday, Mengniu China Dairy Industrial Park held the foundation laying ceremony of Mengniu phase IX milk powder factory. The total investment of the project is 2 billion yuan. It mainly constructs the production workshops of adult powder, infant powder, sheep milk powder and skimmed powder and relevant supporting facilities. After the completion of the project, the production capacity is 36000 tons / year and the annual output value can reach 3 billion yuan.
“This is the second 5g digital chemical plant built by Mengniu in China’s dairy industrial park, which is of decisive significance for Mengniu to accelerate the completion of the layout of milk powder output value of 10 billion.” Mengniu said when replying to the snack generation’s inquiry today. Another person close to Mengniu told xiaoshidai that the new factory mainly produces Yashili products.
At present, Yashili contributes most of Mengniu milk powder income. In 2021, the income of Mengniu milk powder was 4.949.1 billion yuan, mainly from Yashili and Bellamy. Among them, Yashili’s milk powder revenue last year was 3.65 billion yuan (Note: the above revenue includes infant formula and adult powder).
Statistics show that Yashili currently operates baby matching brands such as Rui Nur, Arla, Dora lamb and Yashili, as well as yourui middle-aged and elderly milk powder, M8 children’s formula and so on. Among them, Arla belongs to the “assets” of Mengniu’s second largest foreign shareholder, and Yashili is responsible for distribution in China.
In the view of the outside world, although Mengniu has not disclosed the latest overall plan for milk powder, promoting the privatization of Yashili should further drive the “10 billion goal”. However, this statement has not been confirmed by Mengniu or Yashili.
“Yashili’s privatization is actually a good thing for Mengniu’s whole milk powder sector.” A senior person in the milk powder industry pointed out in an interview with the snack agent today that after being privatized, Yashili does not need to bear the pressure of shareholders on profitability, stock price, market valuation and other indicators, and can make more efficient and flexible decisions.
The above-mentioned people also believe that the “breakup” between Mengniu and Danone will not have a great impact on the future development of both sides.
“In fact, when Mengniu and Danone became strategic partners, they also focused on Danone’s global R & D capability and milk source, supply chain, capital and international management system. After Danone came in, it also played a certain active role. Danone took a stake in Mengniu in order to use its management team and channels to quickly spread in the Chinese market, and also obtained good benefits from Mengniu’s excellent performance. But now, Danone headquarters The assets of global joint ventures and cooperation are being reconfigured. China has fully possessed the ability to operate independently, and businesses such as aitamei can also stand on their own. Therefore, Mengniu has long been unnecessary to help “lead the way.”
The above-mentioned people described that Mengniu and Danone have completed the historical stage of “taking what they need”.