Mengniu
Encyclopedia
China Mengniu Dairy Company Limited is a manufacturing and distribution company of dairy product
s and ice cream
in the People's Republic of China
. The company is based in Inner Mongolia
and manufactures dairy products under the Mengniu brand.
In July 2009, Mengniu sold a 20% stake to a consortium
led by state-owned China National Oils, Foodstuffs and Cereals Corp, China's largest importer and exporter of food. That sale made the state the single largest shareholder
.
Mengniu's main competitor in China is Yili Group.
products, such as ultra heat treated (UHT) milk, yogurt and milk beverages, ice cream
and other dairy products, such as milk powder and milk tablets. During the year that ended 31 December 2005, the company operated 14 production bases with an aggregate annual production capacity of 2.78 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. The name Mengniu literally means 'Mongolian cow'.
, another Inner Mongolian dairy giant which is now Mengnius largest competitor. He started the company in 1999, and the company's textbook growth has swept the country by storm.
, yoghurt
and other dairy products in mainland China
, partly due to its high-profile advertising campaigns. One such campaign advertised "special milk for China's astronaut
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 Mengnius 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, which has always been privately owned, has now become a symbol of entrepreneurship in China.
Mengniu was among those named for having milk powder samples which tested positive for melamine. The company recalled tainted milk powders and apologised to the public. Trading in Mengniu shares on the Hong Kong Stock Exchange
was suspended on 17 September. Shares in other dairy companies fell strongly the next day. On discovery that their liquid milk was also contaminated, Mengniu was stripped of its status as 'Chinese national brands'. "This is not a situation of somebody innocently cheating just to try to make a little more money," said John Eldred, managing partner of law firm Keller and Heckman LLP in Shanghai. "They are doing it with an eye toward knowing they are cheating and knowing they are risking the health of the people who are using their products." The Washington-based firm specializes in food and drug regulation.
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. 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'.
, 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.
On 17 September 2008, Arla Foods issued a statement on the company's web site, Mengniu Dairy, its Chinese joint venture partner, whose products have tested positive for melamine, and subsequently have been recalled and production at Mengniu Arla's milk powder factory has been temporarily suspended.
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."
Dairy product
Dairy products are generally defined as foods produced from cow's or domestic buffalo's milk. They are usually high-energy-yielding food products. A production plant for such processing is called a dairy or a dairy factory. Raw milk for processing comes mainly from cows, and, to a lesser extent,...
s and ice cream
Ice cream
Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners...
in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. The company is based in Inner Mongolia
Inner Mongolia
Inner Mongolia is an autonomous region of the People's Republic of China, located in the northern region of the country. Inner Mongolia shares an international border with the countries of Mongolia and the Russian Federation...
and manufactures dairy products under the Mengniu brand.
In July 2009, Mengniu sold a 20% stake to a consortium
Consortium
A consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their resources for achieving a common goal....
led by state-owned China National Oils, Foodstuffs and Cereals Corp, China's largest importer and exporter of food. That sale made the state the single largest shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
.
Mengniu's main competitor in China is Yili Group.
Products
Mengniu's products include liquid milkMilk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...
products, such as ultra heat treated (UHT) milk, yogurt and milk beverages, ice cream
Ice cream
Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners...
and other dairy products, such as milk powder and milk tablets. During the year that ended 31 December 2005, the company operated 14 production bases with an aggregate annual production capacity of 2.78 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. The name Mengniu literally means 'Mongolian cow'.
History
The owner and founder of Mengniu is Mr Niu Gensheng, a former employee of YiliYili
Yili may refer to:*Yili , Chinese classic text*Yili Group, company of dairy industry in China*Yili horse, small horse from the north-western Xinjiang region of China*Ili Kazakh Autonomous Prefecture, in northernmost Xinjiang, China...
, another Inner Mongolian dairy giant which is now Mengnius largest competitor. He started the company in 1999, and the company's textbook growth has swept the country by storm.
Advertising
The company is a leading manufacturer of milkMilk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...
, yoghurt
Yoghurt
Yoghurt, yogurt or yogourt is a dairy product produced by bacterial fermentation of milk. The bacteria used to make yoghurt are known as "yoghurt cultures"...
and other dairy products in mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
, partly due to its high-profile advertising campaigns. One such campaign advertised "special milk for China's astronaut
Astronaut
An astronaut or cosmonaut is a person trained by a human spaceflight program to command, pilot, or serve as a crew member of a spacecraft....
s" after the successful launches of the Shenzhou 5
Shenzhou 5
Shenzhou 5 — was the first human spaceflight mission of the People's Republic of China , launched on October 15, 2003. The Shenzhou spacecraft was launched on a Long March 2F launch vehicle. There had been four previous flights of unmanned Shenzhou missions since 1999...
and Shenzhou 6
Shenzhou 6
Shenzhou 6 was the second human spaceflight of the People's Republic of China, launched on October 12, 2005 on a Long March 2F rocket from the Jiuquan Satellite Launch Center. The Shenzhou spacecraft carried a crew of Fèi Jùnlóng and Niè Hǎishèng for five days in low Earth orbit...
spacecraft(in fact the company sponsors the Chinese space program), and Mengniu also sponsored the popular SuperGirl contest. SuperGirl Zhang Hanyun
Zhang Hanyun
Zhang Hanyun , also known as Baby Zhang or Kristy Zhang, is a Chinese singer. At the age of 16, Kristy rose to fame as runner-up of the singing contest Super Girl 2004.-Early life:...
(aka Baby Zhang) became associated with Mengnius 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, which has always been privately owned, has now become a symbol of entrepreneurship in China.
2008 Chinese milk scandal
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
was suspended on 17 September. Shares in other dairy companies fell strongly the next day. On discovery that their liquid milk was also contaminated, Mengniu was stripped of its status as 'Chinese national brands'. "This is not a situation of somebody innocently cheating just to try to make a little more money," said John Eldred, managing partner of law firm Keller and Heckman LLP in Shanghai. "They are doing it with an eye toward knowing they are cheating and knowing they are risking the health of the people who are using their products." The Washington-based firm specializes in food and drug regulation.
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. 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'.
- On 5 August 2008, the two largest shareholders, Yinniu and Jinniu, sold HK$1.28 billion worth of shares through a placement, their fourth such sell-down since the company went public in 2004.
- On 17 September 2008, Hong Kong Stock Exchange suspended trading in shares of China Mengniu Dairy Co. Ltd.
- On 23 September 2008, China Mengniu Dairy Co. Ltd. shares dropped 60 percent, the most since its debut in 2004, to HK$7.95 at the 4:10 p.m. close. Trading later resumed. Malaysia, Singapore, Taiwan and the Philippines have decided to pull Chinese dairy products off shelves.
- In February 2009, there was controversy about the safety of using osteoblast milk proteinOsteoblast milk proteinOsteoblast milk protein is the name used by Mengniu, a Chinese dairy company, for a milk protein used as a food additive in their Milk Deluxe since 2005...
(OMP) in Mengniu's Milk Deluxe.
Mengniu Arla
In 2006, China Mengniu Co. Ltd teamed up with Arla FoodsArla Foods
Arla Foods is a Swedish-Danish cooperative based in Århus, Denmark, and the largest producer of dairy products in Scandinavia. Arla Foods was formed as the result of a merger between the Swedish dairy cooperative Arla and the Danish dairy company MD Foods on 17 April 2000.Arla Foods is the seventh...
, 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
Arla Foods
Arla Foods is a Swedish-Danish cooperative based in Århus, Denmark, and the largest producer of dairy products in Scandinavia. Arla Foods was formed as the result of a merger between the Swedish dairy cooperative Arla and the Danish dairy company MD Foods on 17 April 2000.Arla Foods is the seventh...
would own 48 percent. The joint venture company was named Mengniu Arla.
On 17 September 2008, Arla Foods issued a statement on the company's web site, Mengniu Dairy, its Chinese joint venture partner, whose products have tested positive for melamine, and subsequently have been recalled and production at Mengniu Arla's milk powder factory has been temporarily suspended.
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."