China Food

To supply packaging to Yili Mengniu, this old brand enterprise spent more than 2 billion to “buy” the low-temperature track!

With the rising temperature of low-temperature milk in China, kangmeibao, a packaging enterprise that has cooperated with Yili Mengniu for more than ten years, has also decided to “add fire” to the business. A few days ago, kangmeibao announced that it had completed the acquisition of the Asia Pacific refrigerated carton business of Weilv packaging (hereinafter referred to as “Weilv Asia”), with a transaction amount of 335 million US dollars (now about 2.263 billion yuan). “We officially entered the field of low-temperature packaging through acquisition, and will have both normal temperature aseptic packaging and low-temperature packaging businesses in China.” Fan Lidong, chairman and general manager of kangmeibao North Asia Pacific region, told the snack agent.

Xiaoshidai learned that kangmeibao, founded in 1853, has now entered more than 100 countries / regions. It was successfully listed in Switzerland in 2018, with a total revenue of 2.06 billion euros last year (now about 14.194 billion yuan).


“In terms of the number of packaging pieces, the two largest customers of kangmeibao in the world are both in China.” Fan Lidong revealed in a separate video exchange with xiaoshidai that China is currently the single largest market of kangmeibao in the world and an important growth engine. In addition, he also talked about China’s market growth measures, packaging hot trends and so on.


Similar to Tetra Pak from Sweden, kangmeibao entered China as early as last century, and its core business is dairy beverage packaging. At present, kangmeibao serves Yili, Mengniu, Guangming, Huiyuan, Coca Cola and other enterprises in China. “We have entered China since 1985 and have been deeply engaged in the field of aseptic composite paper-based packaging for nearly 40 years. As a supplier of system solutions, we provide packaging materials, filling equipment and after-sales services.” Fan Lidong said. He said that so far, the company’s total fixed assets investment in China is about 5 billion yuan, including packaging material factory, equipment assembly plant and Asia Pacific R & D center. Among them, the three Asia Pacific plants with a total investment of 1.4 billion yuan and put into operation last year are expected to be fully utilized by 2026. At present, the annual output of cartons in phase I can reach 8 billion. “We grow together with China’s food and beverage industry, especially China’s dairy industry. We are witnesses, contributors and beneficiaries.” Fan Lidong told the snack generation.


Looking back at this growth history, we have to mention Yili and Mengniu. The starting point of the cooperation between kangmeibao and this pair of dairy companies is the time of their rapid expansion. According to the data of kangmeibao 2022 capital market day found by snack agent, the company opened long-term cooperative relations with Yili and Mengniu in 2003 and 2005 respectively. In China’s liquid milk aseptic carton packaging industry, kangmeibao currently occupies 18% of the market share.

According to fan Lidong, Kangmei bag has long-term experience in the field of normal temperature aseptic packaging in China, providing Kangmei brick bag, Kangmei smiling face bag, Kangmei Ke microwave aseptic bag, Kangmei bag granule filling technology, etc.

Among them, Kangmei smiling face bag is one of the fastest-growing packages in China in recent years. It is currently used in Yili Shuhua milk, Mengniu pure screening, Mengniu real fruit granules and other products. Looking up the conference data, the snack generation found that from 2018 to 2021, the compound annual growth rate of Kangmei smiling face bag in China

With the acceleration of food and beverage innovation, this old brand packaging enterprise also proposed to speed up innovation to seek opportunities.

“In the Chinese market, product innovation and packaging box innovation may be the most active in the world.” Fan Lidong told xiaoshidai that with the further maturity of the food and beverage market, the new products not only need to meet the consumers’ preferences in taste, packaging design and other aspects, but also need to be launched more quickly before they are expected to take the lead. “According to the traditional way before, when a customer wants to make a new product, he usually makes a sample first and then conducts a consumer survey. However, when a customer wants to make a large number of different products, for example, a product needs to make 10 or 20 flavors for consumers to test, it needs to have a more efficient and fast process and mature system support.” He said that for this reason, kangmeibao has set up an Innovation Incubation Platform, relying on the Asia Pacific Technology Center to complete market research, product research and development, and pilot filling with customers, so as to improve the speed of innovation and save development costs.

When talking about the trend of packaging innovation, fan Lidong believes that sustainability is the “top priority” of industry development. “In 2022, the global sustainable food packaging market is expected to exceed US $200 billion and will continue to grow in the next few years. In China, relevant policies are also accelerating the recycling of the packaging industry and developing more food packaging material recycling technologies.” He said, “we have been committed to promoting sustainable development and making packaging more environmentally friendly, safe, convenient and recyclable.” For example, the gold standard of “0 aluminum foil low-carbon sterile paper-based composite packaging” launched by Yili last year was written by kangmeibao.

“In 2021, Kangmei packaging launched the ‘Kangmei green core packaging’ with zero aluminum foil in China. This normal temperature sterile packaging can replace aluminum foil with a more environmentally friendly barrier layer on the premise of ensuring product quality, reducing the variety of raw materials in the packaging, making it easier to recycle, reducing carbon emissions and being more environmentally friendly.” Fan Lidong said. It is reported that by 2026, kangmeibao China plans to upgrade all specifications of packaging to zero aluminum foil structure. “We, our partners and customers hope to contribute to the sustainable development of China’s food packaging industry and provide consumers with better packaging and more choices.” Fan Lidong said.

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To supply packaging to Yili Mengniu, this old brand enterprise spent more than 2 billion to “buy” the low-temperature track!







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