Mengniu Bets on Premiumisation and Global Expansion Amid Domestic Headwinds
- PYD
- Apr 22
- 1 min read
Facing sharp revenue and profit declines in FY2024, Chinese dairy leader Mengniu is refocusing on premium innovation and accelerating international growth. Its “One Core Two Wings” strategy targets value-added dairy products and stronger global market presence, particularly in Southeast Asia.
Insights & Strategic Moves:
FY2024 Financials Reflect Pressure: Mengniu reported a 10.1% revenue decline to CNY88.7bn (US$12.2bn) and over 95% drop in net profit to CNY224.6mn (US$30.9mn), primarily due to major losses at Bellamy’s Organic (Australia) and China Modern Dairy.
Strategic Pivot – ‘One Core Two Wings’:
Core Focus: Six priority categories—ambient dairy, chilled dairy, fresh milk, cheese, ice cream, and formula—are undergoing innovation to target personalised, premium consumption.
Product Innovation: Successes include Milk Deluxe Desert Organic Pure Milk and a new lactose-free UHT range. Ice cream upgrades are also a priority.
Nutrition Wing: Mengniu is expanding its M-ACTION sports nutrition platform to meet functional health trends.
Global Expansion Wing:
Southeast Asia First: Aice, Mengniu’s Indonesian ice cream brand, is No.1 in Indonesia and No.2 in the Philippines.
Manufacturing Base Strategy: Factories in Indonesia and the Philippines will serve as regional hubs for broader international growth.
Cheese as a Growth Driver:
Mengniu completed internal integration of its cheese business in 2024.
Plans include B2B and B2C channel development and expanded cheese portfolio to increase penetration in the fast-consolidating Chinese and Asian cheese market.
Mengniu is doubling down on premiumisation, health-centric innovation, and ASEAN-led overseas expansion to stabilise long-term growth and recover from near-term losses. Despite FY2024 challenges, Mengniu’s strategic reset signals a forward-looking focus on innovation, regional strength, and value-added growth in China and beyond.
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