Royal Netherlands fisiland (hereinafter referred to as fisiland), which decided to leave the milk powder of Meisu Jiaer, proved its vision and confidence with the latest performance.
This afternoon, the Dutch dairy giant released its report card for the first half of 2022. Its total revenue reached 6.6 billion euros, up 19.4% year-on-year, and its net profit increased by 77 million euros to 139 million euros. Among them, the income of the professional nutrition business group of infant formula milk powder increased by 18.6% year-on-year to 612 million euros. Xiaoshidai noticed that Royal maisujiaer has become a “hero” driving the growth of fislan China.
“In the first half of this year, our team withstood the test. We are also full of confidence in the future development of fisiland and Maxwellian in China.” Chen Ge, President of fislan China, said today that in the future, the industry will compete for the comprehensive strength of enterprises, including brand strength, digital ability, channel management ability, supply chain flexibility, product quality, formula registration, etc.
Let’s pay attention.
“Substantial growth”
To cater to the high-end trend, the overall performance of the infant milk powder business of fisland China is good.
Today, xiaoshidai learned from fisiland that fisiland’s performance in China increased steadily in the first half of 2022, among which, the net sales of Meisu Jiaer increased by a median double-digit year-on-year, and the net sales of Royal Meisu Jiaer increased by 37% year-on-year. Throughout the world, the market share of Mercure has remained stable.
“The data shows that the revenue and profit of fisland increased well in the first half of the year. The revenue and profit of infant nutrition products in China increased significantly, partly due to the strong growth of FRISO prestige.” Hein Schumacher, Global CEO of fisland, said.
Obviously, the growth of fisiland China’s infant nutrition products is mainly driven by the sinking of high-end products. “Due to the further expansion of distribution in offline cities in China, the revenue and market share of ultra-high-end products (i.e. Royal usu gold) have increased, while the high-end products FRISO gold have further declined.” Caibao said.
At the same time, fislan pointed out in the financial report that China’s blockade measures under the epidemic have brought challenges to the transportation, import and distribution of products. However, judging from the results of performance, in the second quarter, Americano Kerry “bucked the trend to achieve a record high” in the Chinese market. “During the epidemic in Shanghai, the China management team of fislan made rapid decisions and responded effectively through agile supply chain management.” Fisland China said today.
In the first half of this year, fisland China’s milk powder business also made many important progress. Xiaoshidai learned that the registration of the formula of Maisu Jiaer Yuanyue series has been approved. In addition, due to the close cooperation between the Chinese and Dutch governments, fislan has become the first enterprise to complete the overseas factory audit since the COVID-19. “This is conducive to the stability of the global supply chain, and also brings new opportunities for the sustainable development of Americano in China.” The company said.
Let’s take a look at the global professional nutrition business of fislan.
“Despite the continuous closure of the border between Mainland China and Hong Kong and the sharp rise in raw material prices, the improvement of the product portfolio and the positive exchange rate effect still led to a significant increase in operating profit.” The company mentioned in its financial report that despite the continuous closure of the border, the revenue, performance and market share of the local market in Hong Kong have improved.
In addition, fislan said that the disposable income of consumers was under pressure due to inflation, which was particularly evident in Southeast Asia, where infant nutrition was under pressure. In the first half of this year, the company launched a series of new products of Americano in China, Southeast Asia and Greece.
Full focus
After half a year of strategic evaluation, fisland decided to retain the business of massol Kerr in China and other markets. At the same time, the company is beginning to become “more focused” in the field of milk powder.
“After strategic evaluation, we decided to continue to build the infant nutrition business through the strong growth FRISO brand.” Simahan mentioned in the financial report today that, therefore, fisland has taken a series of latest actions. It is worth noting that he also officially announced to the public that fislan recently signed an agreement to “sell our local infant nutrition production base in Xiushui, Shenyang, China.”
菲仕兰首席执行官司马翰（资料图片）
Yesterday, feishilan China confirmed to xiaoshidai that Yili and Royal feishilan of the Netherlands had reached an agreement on the acquisition of the latter’s infant nutrition production base in Xiushui, Shenyang. The base is the only infant milk powder factory of fislan in China, which is responsible for the production of “child mother” series products. The transaction is expected to be completed by the end of 2022.
“In order to effectively respond to market opportunities, so that we can continue to add value to the milk of member dairy farmers (Note: the fisland cooperative composed of about 16000 dairy farmers is one of the largest dairy cooperatives in the world, and the family ranch of member dairy farmers is the cornerstone of the cooperative), fisland is constantly committed to improving the production network and strengthening the brand portfolio.” Simahan said.
It can be seen that in China’s milk powder market, fislan decided to make every effort to play the trump card of “Maisu Jiaer”.
Fisiland China said today that in China’s infant nutrition market, fisiland decided to focus on the brand of maxol Kerr and inject impetus into the sustainable development of the brand through product innovation and deep penetration. “With this strategic decision, fisland will build a more agile organization, integrate resources, increase investment, and provide more categories of better nutrition for Chinese customers and consumers.”
This sale is also the latest move of the strategic evaluation of fisland in China. Xiaoshidai said that fisiland announced the strategic review of beauty beauty in December last year, and the news of bidding continued to spread in the process. However, in the end, the company still decided to retain mercurial and said that the business “remains an important part of the business portfolio of fisland” and will focus on China, Greece, Malaysia, Mexico and Vietnam in the future.
“Fisiland will continue to be active in the Chinese market, but will fully focus on the massol Kerr series.” According to the foreign power index, this shows that Metso Kerr can bring higher added value to the business portfolio, and focusing on this brand is conducive to achieving the best growth. According to foreign news, the company is working with Yili to ensure a smooth transition, and 270 employees will be transferred to Yili and retain their jobs.
Future plans
While clenching its fist and “concentrating on attack”, fisland China also has a new plan for the operation of milk powder business.
The company said today that in terms of product innovation, in the future, fisland will continue to invest resources and iteratively upgrade the formula from the two aspects of technological innovation and raw material innovation. It is reported that at present, HMO, the latest research achievement of fislan, has been approved by EU and US regulators and has been applied to products; In China, HMO applications are being reviewed by the competent authorities and will be applied to products as soon as possible after approval.
In addition, in terms of category expansion,
In terms of improving the level of digitalization, the company said that in the future, on the one hand, Mercure will continue to drive the rapid development of business and continue to improve efficiency through the “minimalist digital business model”; On the other hand, adapt to and meet the changes and demands of mom’s mobile network in the new era, so as to make the brand closer to consumers.
“As a pioneer in the digital transformation, Metso Jiaer includes the construction of closed-loop Internet marketing links and the collection of data and information. In this process, it needs to constantly learn, iterate and upgrade.” The company said.
According to the data, fislan launched the “all channel artificial intelligence customer service project of Meisu Jiaer” in 2020, becoming the first FMCG enterprise to apply artificial intelligence technology in the field of customer service, and it is also the only company in the maternal and infant industry that provides expert video connection services. In recent years, fisland has also achieved full traceability of dairy safety by relying on blockchain technology. At the same time, at the level of terminal sales, it has explored unmanned retail with the help of matrix QR code technology.
In the first half of this year, the channel sinking strategy that brought a lot of growth to fisland’s China milk powder business also benefited from the improvement of its digital level.
Xiaoshidai said that in order to further open up the sinking market in China, fislan launched a project called “frisogo” last year. This is an app independently developed by fislan, which is used to link mother and baby stores in the offline market, local service providers and the brand of maxol Kerr. Chen Ge once said that this digital tool is “a useful attempt to promote channel sinking in China”.
Chen Ge, President of fislan China (information picture)
“The next problem to be solved is how to effectively and efficiently do a good job in professional consumer education in such a large market as China. In the general direction, we will adhere to a direct and efficient business model, attract and link more offline market partners through strong brand pull, and support the healthier and sustainable development of business.” Fisland China said today.
Over the past three years, the compound annual growth rate of each business unit of fisland China has maintained double-digit growth. When talking about the driving force for the continuous growth of fisland’s business in China, Chen Ge said today that the internal driving force comes from “PPV”, that is, the continuous optimization and improvement of talent and culture (people), process (process) and visibility (visibility). “This is the core of obtaining certain opportunities in uncertainty.” She said.
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