On the evening of May 11, Coca-Cola and Mengniu related resource confirmed to the Beijing Business News that the two sides will set up a new low-temperature milk brand in a joint venture, and the joint venture company has been approved.
In January, Coca-Cola announced the acquisition of the remaining stake in high-end milk brand Fairlife. Now working with Mengniu to step into the low-temperature milk market can make new attempts outside Coca-Cola’s increasingly frustrated carbonated beverage market.
Mengniu Dairy (Group) Co., Ltd. was established in August 1999, is one of the “prairie giants” of Chinese dairy products. In recent years, Mengniu has been unable to take the lead in its competition with another giant, Yili Milk, and has begun to try the Chinese low-temperature milk market, which has not been opened up by both giants.
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The milk market in China is different from that in most countries in the world. Because China’s geographic span is large, but the main milk production areas are concentrated in the northern grasslands, China is lack of low-temperature milk enterprises covering the whole country. In mainland China, low-temperature milk is mainly supplied by small dairy companies in local factories, while the vast majority of Chinese drink milk from large national dairy companies on a daily basis.
As we all know, milk transportation at room temperature is also relatively safe, suitable for such a vast country as China, but nutrition and taste are not good. As a result, Mengniu is trying to enter low-temperature milk this time and is also trying to create a new habit for Chinese people to drink milk.
But many commentators believe that the technology and logistics that are difficult to popularize in China have not yet been solved, and that the joint venture brand between Mengniu and Coca-Cola can only be regarded as a trail.