Mengniu - History, Evolution, Present and the Future
-
Upload
greg-thain -
Category
Lifestyle
-
view
120 -
download
2
description
Transcript of Mengniu - History, Evolution, Present and the Future
History & Origin . . . . . . . . . . . . . . . . . . . 3
Early Evolution . . . . . . . . . . . . . . . . . . . . 4
Global Expansion . . . . . . . . . . . . . . . . . 5
Modern Business . . . . . . . . . . . . . . . . . . 6
Company Structure . . . . . . . . . . . . . . . 7
Summary . . . . . . . . . . . . . . . . . . . . . . . . 8
Social Media Accounts . . . . . . . . . . . . 9
2
Mengniu Dairy Group was founded in 1999 by Niu Gensheng.
Niu Gensheng who began his career in 1978 working for a dairy in
Hohhot, capital of the Inner Mongolian Autonomous Region in
North-central China.
In 1998, Niu, worked his way up to become the Vice CEO of Inner
Mongolia Yili Groupm the largest dairy manufacturers in China.
Niu, set out on his own and took over a small dairy producer,
Mengniu Dairy
In five years, Mengniu was a listed company on the Hong Kong
exchange.
3
By 2005, Mengniu was operating 14 production sites, processing
2.8 million tons of liquid milk and selling liquid milk products, ice
cream and other dairy products.
The turnover had reached $1.3 bil-lion, only $200 million behind
his old employer Yii, the market leader.
In 2006, Mengniu made a joint venture with the European dairy
giant, Arla Foods.
Together, the companies established Mengniu Arla (Inner Mongolia)
Dairy Products Co. Ltd
The goal was to build the best milk powder brand in China
In one year, Mengniu Arla opened as one of the world’s most
advanced dairy R&D centers
The company advertised hugely throughout China, sponsoring the
Chinese space program
4
In December 2006, Mengniu signed a series of contracts with
Danone to set up three yoghurt joint ventures in Inner Mongolia,
Beijing and Ma’anshan but the partnerships failed.
The company’s shares took a hammering on the Hong Kong Stock
Exchange by an injection of capital from state-owned COFCO Ltd.,
China’s largest food importer and exporter, plus with private
equity cash in return for 20% of the equity.
By the end of 2009, Mengniu was again one of the top 20 global
dairy companies, a year later made number sixteen in the world
and, both in volume and value terms, number one in China.
In 2011, sales reached a new high of just over $6 billion, with 90%
in liquid milk products, 9% in ice cream and 1%.
Milk Deluxe, Champion, Future Star, Fruit Milk Drink and Youyi C all
enjoyed strong double-digit growth, with 27% in 2012
5
It has export markets in Malaysia, Singapore, Taiwan and the
Philippines
These export markets suddenly closed after suffering a mass de-
listings
By 2009, Mengniu was again one of the top 20 global dairy
companies
A year later, the company made to number sixteen in the world
and, in both volume and value terms, number one in China
6
In 2011, sales reached a new high of just over $6 billion, with 90%
in liquid milk products, 9% in ice cream and 1% in liquid milk
UHT accounted for a steadily declining 61% with the more strongly
branded beverages making 25% and Yoghurt 14%.
Milk Deluxe, Champion, Future Star, Fruit Milk Drink and Youyi C all
enjoyed strong double-digit growth, moved from 17% in 2008 to
27% in 2012
With its strong and branded portfolio that decided Arla to take a
6% stake in mid-2012, a closer cooperation it is hoped will increase
Chinese five-fold by 2016
7
Mengniu followed the pattern of buying up a lot of dairies because
it will also buy the scale to invest in the production of other dairy
products
Mengniu also depended on better technology enabling more
differentiated products and effective branding with its joint venture
to Arla Foods
8
Mengniu was established by Niu Gensheng which in five years was
a listed company on the Hong Kong exchange
The joint venture with the European dairy giant, Arla Foods, helped
the company to be in the number one spot in the Chinese dairy
industry
9
Website: www.mengniuir.com/html/
10