In 20 17, Lu, president of Mengniu, led the management team and began to implement the new development concept in this dairy leader who once created "rocket speed". It can be seen from Mengniu's major investments and financial reports in recent years that "Mengniu's new strategy" highly responds to the national policy of "deepening supply-side structural reform and promoting high-quality economic development", from simply pursuing scale to paying attention to development quality and development value. This interim report fully demonstrates the interpretation of the concept of "high quality" by the Lu team-everything is for high quality.
High-end products create high-quality experience
The data shows that high-end normal temperature milk, high-end fresh milk, high-end milk powder and other categories contributed greatly to Mengniu's performance in the first half of the year. Mengniu focuses on high-end and gets rich returns. The key is to conform to the general trend of dairy consumption upgrading.
Fang has expressed his firm expectation for china dairy's consumption upgrading on several important occasions. The facts also verify this judgment. Whether it is "Telunsu", the leader of high-quality pure milk who has served for 15 years, or "Daily Fresh Language", which has only been launched for more than two years, it has become the most important contributor to Mengniu's income and profit growth in recent years. Since 20 19, Mengniu has comprehensively upgraded its high-end product line. Telunsu launched the "Dream Cover" series, which raised pure milk and organic "Dream Cover" products from 3.6 grams of milk protein per 100 ml to the highest in the industry. Daily fresh language introduces new products such as 0 fat, cold latte and desert organic; Future Star launched "Double Original" children's milk containing DHA and high calcium; Low-temperature acid, baby powder, adult powder, cheese and other categories have also launched a series of high-quality and functional new products, which greatly enriched Mengniu's high-end product matrix.
After the outbreak of the COVID-19 epidemic in the first half of the year, the consumption in the field of health and nutrition was further expanded and upgraded, and the sales of high-end brand products of Mengniu increased steadily. Mengniu's financial report shows that Telunsu grew by 19% in the first half of the year and even exceeded 30% in the second quarter. Daily fresh language achieved three-digit growth in the first half of the year, ranking first among high-end fresh milk brands; Low-temperature yogurt continues to occupy the top spot in the industry, with the increase of 80% for Youyi LC-37 and over 50% for Guan Yi milk "Little Blue Hat". Mengniu has become synonymous with domestic high-quality dairy products.
Forward-looking investment supports high-quality strategy
With the strategy of focusing on high-end quality, Mengniu achieved excellent transcripts in the first half of 2020 under the influence of the epidemic. It is their forward-looking investment in high-end dairy resources in recent years that has provided strong support for the high-quality strategy.
In the spring of 20 17, Mengniu increased its holdings of modern animal husbandry, the largest dairy farming enterprise in China. At the end of that year, relying on the high-quality pasture resources adjacent to the Yangtze River Delta, Mengniu launched the daily fresh language, successfully entered the fresh milk category, and quickly became the leader in the high-end market. 20 18, 12 and July this year, Mengniu made two strategic investments in Shengmu, the largest organic dairy company in China, and in this year or so, Mengniu's income from organic products has successfully jumped to the top in the industry. In recent years, the distribution of milk sources and production capacity in Oceania has also enabled Mengniu to promote the comprehensive upgrade of its Reborn series baby powder and high-end adult powder.
Mengniu's forward-looking investment is also reflected in the layout of emerging categories. In the second half of last year, Mengniu re-integrated the cheese business platform. In July this year, we established a cheese company with Arla, a Danish shareholder, and arranged a deal with the former Telunsu leader. After a series of dazzling combination punches, Mengniu has completed the layout of cheese business and become the absolute leader of this most potential dairy product category. In the first half of the year, Mengniu retail cheese achieved three-digit growth. Also in the summer of this year, Mengniu quietly set up a joint venture factory with Coca-Cola in Hefei, introduced a low-temperature milk product with cutting-edge technology into the China market, and opened up a brand-new high-end market segment.
Changing cages for birds and strengthening quality routes
In the second half of 20 19, Min Lu put down a move that many people couldn't understand-selling Junlebao and buying Bellamy, an Australian organic milk powder enterprise. Is Mengniu crazy to sell a large local mature company that contributes revenue and set up an overseas enterprise that has just emerged in China and appears to be somewhat "aloof"?
However, in the first half of this year, with Mengniu officially taking over Bellamy's business, the beauty of Lu's move gradually became clear. In the past six months, Mengniu officially established the international business department, and Stephen Maher, the head and vice president of the department, directly sat in Australia to rapidly promote the integration and coordination of production capacity and resources between Australia and New Zealand. In the second quarter when the epidemic situation just eased, Bellamy suddenly launched a series of high-end and ultra-high-end organic new products such as A2 milk powder and goat milk powder, and released a series of products in Chinese on August 25th, realizing the transformation from "Haitao online celebrity" to "regular army". The results of the interim report show that Bellamy achieved good growth and significantly accelerated profits in the first half of the year, and began to become a key force supporting Mengniu's quality strategy.
20 19 July, shortly after the sale of Junlebao, Lu Min was asked by the media at the Davos Forum in summer. At that time, he answered the question like this: "Mengniu needs to concentrate on investing more in brands and categories that can achieve high growth and contribute high gross profit, and change from deliberately pursuing scale to focusing on high-quality development. Whether you sell Junlebao or buy a new business in the future, you must obey this goal. " Looking back on this sentence now, it is actually the declaration of "changing birds in cages" issued by Mengniu in the "year of weak crown". The "prairie cow" who once ran out of the rocket speed is trying to become the pioneer of the high-quality era in china dairy and the founder of the high-quality life of consumers in China, helping the national dairy industry to achieve the real "phoenix nirvana".
Judging from the financial report released this time, the cash in Mengniu's account is still abundant, and Lu's "high-quality" chess game should have more coup worthy of expectation.