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[Dairy News]Proportion Of yogurt Sale Increased in China

2015-9-5 13:55:47 Comments:0 Views:3002 category:Dairy Sector News

Up until September 1 2015, several Dairy enterprises including Mengniu and Yili released their achievement during the first half of the year 2015. Although Beingmate, Ausnutria, Biostime, Sanyuan and Kedi Dairy suffered a decrease in net profit due to the milk powder price war, six dairy tycoons Yili, Mengniu, Yantang Milk, Yianrun Milk which mainly produce liquid dairy goods had an increase compared to the same period last year.

However, among such reports of good and bad, it was not so difficult to discover subtle changes in the profit structure of Yili, Mengniu and GuangdongYantang: business of lactobacillus dairy beverage like yogurt increased rapidly, their proportion grew substantially. Especially for Mengniu, its key products such as Guanyiru, Biyou, Chunzhou and etc registered a revenue of RMB 5.57 billion, an increase of 56% compared to the same period (RMB 3.57 billion) in 2014. The sales of Yili Anmuxi room temperature yogurt increased 9.8 times; Changqing and Meiyitian increased by 60% and 1% respectively. Similarly, Guangdong Yantang lactobacillus dairy beverage had a revenue of 14.05 million in the first half of 2015, taking up 30.4% of the total revenue, while this proportion was only 28.6% in 2014. All the data show that the competition in the yogurt market has begun for the dairy tycoons and that business in yogurt and lactobacillus dairy beverage started to contribute to dairy tycoons’ achievement.

“In recent years, the need for yogurt products has been increasing by 20% to 30%, while the need for room temperature milk declined. ” Song Liang, senior dairy analyst commented.

He introduced that, with the growth of economic level, China’s domestic eating structure is changing, especially yogurt and lactobacillus dairy beverage won the welcome of consumers while the proportion of greasy and meaty food increased. In the first-tier and second-tier cities, yogurt’s market share increased by 10% to 20%, and in third and fourth tier cities, the increase was by 30% to 40%. “ It was due to this change in market need, since 2014 enterprises like Yili and Mengniu put key investment into these two businesses and expanded promotion channels.” Song Liang said, on the other hand, the growth of room temperature milk slowed down, which forced the enterprises to make adjustment.

“At present dairy enterprises make adjustments in three ways: to increase the proportion of yogurt, to develop pasteurized milk, to march into the field of pasteurised milk. ” Song Liang revealed that now the macro economy slows down its pace, so the structural adjustment of dairy enterprises has to be speed up. They mainly distribute low temperature yogurt and pasteurised milk in first and second tier cities; in third and fourth tier cities where freezing conditions are relatively not so good, they distribute room temperature yogurt. “When room temperature yogurt goes into the market at the beginning, its price was relatively high, but in order to open the market in third and fourth tier cities, all the enterprises are lowering the price through promotion. ” He said the price was decreased by 10% to 20% now.