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Mengniu Dairy brand Shiny Meadow (每日鲜语), rolled out two new fresh milk products on April 6, 2020. One is a limited spring collection with a sakura pink package, and the other is organic milk, which is marketed as containing 5% “oasis milk” sourced from Mengniu’s desert oasis pasture.
Shiny Meadow’s Limited Spring Collection Fresh Milk
Type | Nutrition claims | Shelf life | Price |
Pasteurized milk | 3.6g protein per 100ml; 120mg calcium per 100ml | 15 days | 79 yuan(1L*3) |
Shiny Meadow New Organic Fresh Milk
Type | Organic | Nutrition claims | Shelf life | Price |
Pasteurized milk | Yes (China & Europe) | 3.6g protein per 100ml; 120mg calcium per 100ml | 15 days | 117 yuan(250ml*10) |
Both products are available on Tmall[1] and other offline retail channels, including supermarkets and convenience stores.
Mengniu’s fresh milk brand Shiny Meadow was launched in 2018 and is its youngest business segment. Shiny Meadow is already on its way to becoming China's No 1 brand in the high-end fresh milk segment. The brand recorded a 73% revenue increase in 2018 and a staggering 500% increase in 2019. In 2019 Mengniu controlled 7.1 percent of China’s fresh milk market 2019, up 4% percent from the year before.
According to the China Dairy Industry Association, the market share of low-temperature pasteurized milk in China is about 15.2%, while in developed countries, it is over 90%. The disparity between the China data and the rest of the world points to the untapped potential of the Chinese market.
Mengniu’s sales have faltered of late, with both February and March sales being negatively affected by COVID-19. Despite this overall downturn, its e-commerce, and home-delivery business channels have grown rapidly during this period. E-commerce sales have grown 200%, and "JD home-delivery" sales increased by 400%.
Although Mengniu had seen revenue grow 14.6 percent year-on-year to 79 billion yuan ($11.11 billion) in 2019[2], it’s still short of achieving the 100 billion yuan milestone in 2020. At the beginning of this year, it invested in domestic cheese enterprise Milkground (妙可蓝多) and sponsored many TV shows like Youth with You by Tencent video. We can expect Mengniu to double down on this investment in new products and advertising, especially investment in room-temperature & low-temperature milk products, like yogurt.
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