Coca-Cola, Mengniu’s JV to Sell Chilled Milk
The beverage giant Coca-Cola Co said on Tuesday that it has set up a joint venture with Chinese dairy giant China Mengniu Dairy Co to produce and sell chilled milk in China.
Coca-Cola said the joint venture is a reaffirmation of its long-term commitment to the Chinese market and will look to tap Chinese consumers’ growing interest for value-added and better-tasting dairy products.
In addition, the joint venture will look to make full use of the advantages of both companies, including dairy development and processing techniques, brand influence and distribution channels.
Industry experts said that chilled milk sector is an area where beverage and dairy producers have competed fiercely for market share.
At the moment, Mengniu and Yili dominate the UHT(ultra high temperature) milk segment in China, which also accounted for 88 percent of the family milk purchases in the country last year, according to Jason Yu, general manager of market research consultancy Kantar Worldpanel China.
“Chilled milk was purchased by just 29 percent of the Chinese families and hence has huge growth potential.”
目前，蒙牛和伊利在中国的UHT(超高温)牛奶市场占据主导地位，据市场研究咨询公司Kantar WorldPanel中国的总经理贾森·余(Jason Yu)称，去年中国家庭牛奶的购买量中，88%来自蒙牛和伊利。