Coca-Cola and Mengniu cross-border cooperation, layout of low-temperature milk market

13 Jul

Coca-Cola and Mengniu cross-border cooperation, layout of low-temperature milk market

Coca-Cola and Mengniu cross-border cooperation, layout of low-temperature milk market
The official website of the General Administration of Market Supervision recently notified that the new joint venture between Coca-Cola and China Mengniu Dairy Co., Ltd. was closed on April 29.Mengniu responded to the sauna. Yewang said that the news that can be confirmed at present is that it has obtained the decision of the Market Supervision Administration to not implement further review. The new joint venture company will produce and sell low-temperature milk products in China, and it is a brand new brand.According to Coca-Cola’s response to the media, the newly established joint venture will make full use of the advantages of both parties in dairy product research and development, dairy processing technology, brand influence, and distribution channels to quickly transform Coca-Cola China into a “full-category beverage company”.At first, it was believed that Coca-Cola and Mengniu cooperated in the layout of the dairy industry, which was associated with performance changes and company conversion strategies.In 2017, Coca-Cola Global CEO James Quincey said on the conference call that Coca-Cola is confident of gaining more market share, especially in the categories of juices, dairy products, plant-based beverages and water.At the time, in 2018, Coca-Cola China had invested in the Chinese online red yogurt brand “Lechun”, currently holding 12% of the shares, ranking Lechun’s second largest shareholder.In January this year, Coca-Cola also announced the acquisition of the remaining shares of high-end milk fairlife company.From the perspective of cooperation, Mengniu and Coca-Cola also have a certain relationship.At present, COFCO Coca-Cola is controlled by 65% by COFCO Group and Coca-Cola Company holds 35% of the shares. It is the only Coca-Cola bottled group in China that is controlled by China.COFCO Vice President Chen Lang is also the chairman of the board of directors of China Food (Hong Kong-listed company affiliated to COFCO and a major shareholder of Coca-Cola) and Mengniu Dairy.Dairy expert Song Liang believes that the strong capital cooperation between Mengniu and Coca-Cola can accelerate the development of the national low-temperature milk market, and it does not rule out the possibility that the two parties will later acquire some regional pasteurized milk companies.Sauna, Ye Wang Guo Tie editor Li Yan proofread Wang Xin