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  4. [sugar consumption] dairy enterprises "decisive battle" low temperature market

    Date:11, 26, 2019Hits:0

    The field of cryogenic milk is welcoming more competitors.

    Recently, junlebao dairy group (hereinafter referred to as "junlebao") announced the official launch of a new generation of fresh milk junlebao "yue fresh". The product is said to have a shelf life of 19 days thanks to its innovative inf0.09-second super instant sterilization technology and low-temperature aseptic filling technology. At present, junlebao this fresh milk product has been online on the offline channels.

    In the field of low-temperature fresh milk, junlebao, as the largest dairy enterprise in hebei province, is a "newcomer". Wei lihua, chairman and President of junlebao dairy group, said the layout is focused on the market prospects of low-temperature milk products.

    In the past, limited by the influence of milk source, cold chain and channel threshold, as well as consumer habits and other factors, the layout of the cryogenic milk market is not much. But so far last year, several companies have announced moves into the field. Many people in the dairy industry pointed out to the international financial times that, at present, low-temperature milk has become a "new battlefield" in the field of liquid milk competition.

    New incoming

    Junlebao was established in 1995. Currently, it has 18 production plants and 11 modern large-scale pastures in hebei, henan, jiangsu, jilin and other places. Its business scope includes infant milk powder, low-temperature yogurt, normal temperature liquid milk, animal husbandry and other four sectors.

    According to the data released by junlebao earlier, its sales revenue in 2017 increased by nearly 25% year on year, among which, the annual revenue of junlebao milk powder increased by 108% year on year in 2017, and the cryogenicdivision also maintained a high double-digit growth rate. The sales volume of junlebao ranked the fourth in China in 2018.

    This low - temperature yogurt started dairy companies, "ambition" is not only yogurt. Yang hongbin, vice President of junlebao dairy group and general manager of the cryogenic division, told the international financial times that junlebao decided to enter the fresh milk field three years ago.

    Different from normal temperature milk, milk that retains more active protein has a shorter shelf life, which brings about a big problem that the sales radius is relatively narrow. Jun lebao said frankly, in order to extend the shelf life of fresh milk, the past three years, its greater investment in human resources, material and capital.

    Junlebao points out that yue fresh milk products extend the shelf life of fresh milk, while ensuring fresh nutrition, to solve the problem of transportation radius limit.

    It is said that with the listing of yue fresh, junlebao signed strategic cooperation with large retailers across the country, and has started the cooperation of e-commerce platform. In the future, the sales of this product will be promoted through online and offline channels.

    Song liang, a senior dairy analyst, told reporters, "junlebao's layout of the fresh milk market can further target local and surrounding consumers. Because fresh milk not only go to the supermarket channel, but also can send milk to the door, can shorten the distance and consumers.

    Industry to heat up

    As jun lebao enters bureau fresh milk, the market prospect of low temperature domain and even competition condition become focal point again.

    Zhu yue, executive director of CIC zhushi consulting, told the international financial times that yili and mengniu have absolute advantages in normal temperature milk market. Infant milk powder industry concentration is rising, and limited by the decrease in the number of newborn babies, market growth slowed down; In contrast, with the development of cold-chain logistics and consumers' demand for high-quality dairy products, the growth rate of low-temperature fresh milk market remains above 15%, and the market concentration degree is relatively low.

    "As far as we know, under the same product positioning, the price of low-temperature fresh milk is usually about 30% higher than that of normal temperature milk, and the gross profit is better. According to the new dairy data newly launched in early 2019, the gross profit rate of low-temperature products is 42.87%, much higher than 24.67% of normal temperature products." Zhu yue further said.

    In fact, last year, the field of low-temperature fresh milk dynamics began to show a warming trend. In 2018, mengniu fresh milk business unit launched three sub-brands: mengniu · fresh yanxuan, daily fresh language and fresh factory. In the same year, Food Union, a Nordic dairy company, also announced strategic cooperation with yonghui, a local retailer. The first stop of this "transnational marriage" was to jointly launch high-end dairy brands, including low-temperature fresh milk. In April this year, bright dairy, which started with low-temperature fresh milk, launched new products such as 50% reduced-fat fresh milk and ubenol fresh milk, while fonterra's anjia launched its first fresh milk product under its own brand in China.

    Fonterra China r&d director de-sheng xu told reporters that from liquid milk products trends around the world, China's retail market is like in liquid milk in the asia-pacific and the world leading position, the UK, USA, Australia and other mature markets have tend to be saturated, China is currently one of the few fast-growing markets around the world, including low temperature milk market is particularly rapid growth, consumption has been a turning point.

    In an interview with the international financial times, a dairy enterprise said that in the three years from 2018, the market of low-temperature fresh milk in China is expected to grow at a compound annual growth rate of 18.5 percent, and the market size is expected to increase to more than 7 billion yuan by 2021.

    Integration of conjecture

    In the past, due to many problems such as cold chain transportation and milk supply, the business layout in the field of low temperature has been regarded as the competitive edge of regional dairy enterprises. But now, the new entry is breaking this situation, as a major drama in the low-temperature category, the field of fresh milk "war" can be said to have a strong momentum.

    At the end of last year, the international financial news reporter interview dairy products industry has low temperature field, then have the enterprises, in 2019, the low temperature milk volume will continue to increase, the integration of this field will further increase, do not rule out a few dairy giants in the next few years some regional milk enterprises mergers and acquisitions.

    Anti to international financial newspaper reporter pointed out that from the industry point of view, with the development of cold chain logistics, sterilization technology innovation and the rise of new sales channels such as electricity, low temperature milk milk prices by area exclusive industry trend has vanished, overseas dairy company, national milk companies have incoming cold fresh milk market, the market increasingly competitive, yet one or several companies gain a decisive advantage.

    According to industry insiders, the impression of cryogenic milk products to consumers is usually fresh and high nutritional value. Due to the short shelf life, the product of logistics demand is higher, given the current Chinese high quality raw milk is mainly in the north, the south to the north and south of great demand for dairy products dairy unbalanced development situation, future dairy companies low temperature the freshness of the product, the quality of raw milk quality and consumer's overall impression will greatly determine enterprise's dairy products sales levels at low temperature. For enterprises, holding high quality milk source, product preservation level of low temperature milk products will occupy a certain position in the market.

    International finance daily