Inner Mongolia Mengniu Dairy (Group) Limited by Share Ltd. () is a Chinese manufacturing and distribution company of and ice cream. The company is headquartered in Hohhot, Inner Mongolia and manufactures dairy products under the Mengniu brand.
Mengniu's main competitor in China is the Yili Group.
COFCO Corporation is Mengniu’s largest strategic shareholder.
Products
Mengniu's products include liquid
milk products, such as ultra heat treated (UHT) milk,
yogurt and milk beverages,
ice cream and other dairy products, such as
powdered milk and milk tablets. During the year that ended on 31 December 2015, the company operated 33 production bases with an aggregate annual production capacity of 8.68 million tons. China Mengniu Dairy Company Limited's operates in three segments: the liquid milk products segment, which manufactures and distributes processed UHT milk, milk beverages and yogurt; the ice cream products segment, which manufactures and distributes ice cream products, and the other dairy products segment, which manufactures and distributes processed milk powder and milk tablets products.
History
The owner and founder of Mengniu is
Niu Gensheng, a former employee of
Yili Group, another Inner Mongolian dairy giant which is now Mengniu's largest competitor. He founded the company in 1999, and the company's textbook growth has swept the country by storm. In 2002,
Morgan Stanley,
CDH Investments and China Capital Partners signed agreement with Mengniu to invest US$26m for a total share of 32% in the company. Mengniu then went on to be listed on the Hong Kong Stock Exchange (SEHK) in June 2004.
When Mengniu had financial trouble as the result of business following its role in the 2008 Chinese milk scandal, in July 2009, Mengniu sold a 20% stake to a consortium led by the state-owned COFCO Group, China's largest importer and exporter of food.
Advertising
The company is a leading manufacturer of
milk,
yogurt and other dairy products in
mainland China, partly due to its high-profile advertising campaigns. One such campaign advertised
"special milk for China's " after the successful launches of the Shenzhou 5 and Shenzhou 6 spacecraft (in fact the company sponsors the Chinese space program), and Mengniu also sponsored the popular
SuperGirl contest.
SuperGirl Zhang Hanyun (aka
Baby Zhang) became associated with
Mengniu's brand, appearing in Mengniu's commercials, which became instrumental in her elevation to fame. In marketing campaigns, it also uses the slogan "中國牛 世界牛 蒙牛", which metaphorically means "Mengniu will be outstanding in Inner Mongolia, be outstanding in China and world". The company has now become a symbol of entrepreneurship in China. Mengniu has also sponsored the 2018 FIFA World Cup and 2022 FIFA World Cup.
2008 Chinese milk scandal
Mengniu was among those named for having powdered milk samples which tested positive for
melamine. The company recalled tainted powdered milks and apologised to the public.
[Lee Spears, "China Revokes `Inspection-Free' Right as Milk Scandal Spreads" , Bloomberg (18 September 2008)] Trading in Mengniu shares on the Hong Kong Stock Exchange was suspended on 17 September.
[ Reuters "China Mengniu Dairy shares suspended -HKex" , Reuters (17 September 2008)] Shares in other dairy companies fell strongly the next day.
[ Reuters, "Investors dump financials and dairy producers", South China Morning Post (18 September 2008)] On discovery that their liquid milk was also contaminated, Mengniu was stripped of its status as 'Chinese national brands'.
[ Yili, Mengniu, Bright Dairy lose their status as 'national brands' , China Central Television (22 September 2008)]
Mengniu, whose products tested negative in Hong Kong government tests, was immediately de-listed by supermarket chains after tests showed that contaminated samples had been found on the mainland.[Paggie Leung & Mary Ann Benitez, "HK store chains strip shelves of Mengniu goods", Page A2, South China Morning Post (20 September 2008)] Mengniu's CFO attempted to reassure consumers by offering a no-quibble refund on all products, and by drinking liquid milk in front of reporters. He also said that its export products were less likely to be contaminated. This comment spurred accusations on Internet bulletin boards that the company's preferential export policies was because it thought Chinese lives were cheaper than foreigners'.[Jasmine Wang, "Export milk less likely to be tainted, says mainland firm", Page A2, South China Morning Post (20 September 2008)]
On 17 September 2008, Hong Kong Stock Exchange
In 2011 Mengniu Dairy stated that moldy cattle feed led to excessive toxin levels in its milk.[ China's Parents Crave Illegally Imported Baby Formula May 02, 2013 BusinessWeek]
Mengniu Arla
In 2006, China Mengniu Co. Ltd teamed up with
Arla Foods, the largest producer of dairy products in Scandinavia, to produce and distribute solid milk products in China, including Hong Kong and Macau. The Chinese dairy products maker said it would hold 50 percent of the venture, while
Arla Foods would own 48 percent. The joint venture company was named Mengniu Arla.
After the company's products tested positive for melamine, CEO Peder Tuborgh, Arla Foods, said: "The situation is extremely distressing for all the families who need milk of the highest quality to feed their children. It is extremely important that we get to the bottom of the problem so that consumers' safety can be guaranteed and confidence in the Chinese dairy industry maintained, together with Mengniu and the authorities, we're doing everything we can to safeguard quality."
See also
Further reading
External links
