Author: Zhu Danpeng
Recently, the Mengniu Group 2024 Global Partner Conference with the theme of "TOP Ben 100 Years, Jointly Innovate Mengniu" was held in Xiamen. More than 8,700 Mengniu dealers, industry chain partners, and scientific research experts from all over the world gathered together to share the new development trends of Mengniu. Lu Min, president of Mengniu Group, pointed out at the scene that China Dairy is standing on the kick-off line of the "second half", who can play the second half well?
Who can play well in the second half?
According to data from the China Dairy Association, from January to August 2023, the national milk output increased by 7 percent year-on-year2%, the national dairy production increased by 3 year-on-year6%, the scale of production continues to grow;In 2022, the pass rates of fresh dairy products and infant formula milk powder in China will be respectively. 88% and 9998%, continuing to maintain a leading position in the food industry. Although the overall growth rate of the dairy market has slowed down, the resilience of growth is still strong and has begun to enter a new adjustment cycle.
Looking forward to the future, Lu Minfang said that the second half of the dairy industry has just begun, and "more nutritious, greener and smarter" represents the future development direction of the industry. In fact, Mengniu has been working intensively and continuously in the three dimensions of "green, nutrition and wisdom", and is steadily moving towards the strategic goal of "creating a new Mengniu" with higher quality and more valuable development.
About the firmness of "three-two-one".
2023 is an important juncture for Mengniu to achieve its five-year strategic journey, and Mengniu is turning the future into reality through clear strategic goals and firm step plans.
Lu Min pointed out at the sceneIn the face of the second half of the dairy industry, Mengniu will focus on R&D and innovation, brand building, and digital and intelligent transformation, accelerate channel optimization and accelerate new business development, and serve consumers as the "one center" to support the long-term development of the business, "kick" the second half of the dairy industry, and achieve a century-old career.
About the "Three Focuses".In terms of focusing on R&D and innovation, Mengniu continued to solve the "bottleneck" problem in the dairy field, and its self-developed HMO was approved by China and the United States and achieved commercialization. At the same time, Mengniu has also laid out and reserved a number of new technologies and new products. In the future, Mengniu will focus on the three major fields of milk science, nutrition and health, and biotechnology based on consumer needs, achieve more technological breakthroughs, accelerate the transformation and implementation of achievements, and contribute more new products.
In terms of brand building, as a leading dairy brand, Mengniu shoulders the mission of the national team and tells Chinese stories to consumers all over the world on the world stage. In the "Top 20 Global Dairy Enterprises in 2022" list released by Rabobank, Mengniu ranked seventh, and is the youngest TOP10 dairy companies in the world. Not long ago, Mengniu joined hands with FIFA for the fourth time to renew its official global sponsorship of the 2026, 2030 FIFA World Cup and 2027 FIFA Women's World Cup. During the next three World Cups, Mengniu will continue to use the world's top competition stage to convey the brand spirit of "born to be strong" and the brand concept of health and happiness, and continue to lead China's dairy industry to the world. Internationally, in addition to long-term cooperation with FIFA and the World Cup, Mengniu has also established long-term and stable cooperative relations with Disney and Universal Resort, taking advantage of IP to jointly launch limited products and demonstrate the power of China's dairy brand in the international market.
Digital intelligence is the only way for the dairy industry to achieve a leap in efficiency and change its business model. Mengniu regards digital intelligence as the core component of the FIRST strategy, not only to realize the digital intelligence of the entire industry chain "from grass to glass", but also to become a digital intelligence leader for the future healthy ecology. In August, Mengniu officially released Digital Intelligence 30 strategy, focusing on building an AI-driven digital intelligence double flywheel, to achieve a comprehensive intelligent upgrade from the first side to the consumer side. Mengniu's Ningxia plant, the world's first fully intelligent chemical plant, was officially completed and put into operation in May this year. At present, the factory has achieved the "three 100" goals, that is, 100 people, 1 million tons, and 10 billion yuan of annual output value. Through the Internet of Things technology, Mengniu has achieved 24-hour intelligent monitoring of each cow, covering 341 pastures and nearly one million cattle, with a per capita efficiency increase of 20 times compared with traditional factories, creating the highest annual human efficiency ratio of dairy factories in the world. In addition, Mengniu, the world's first large language model in the field of nutrition and health, was launchedGPT, and on this basis, it has created the "WOW Health +" digital intelligence platform to deeply reach consumers through a full range of personalized services.
It is worth emphasizing that the sustainable development of the dairy industry is of great significance and will not be achieved overnight. Backed by the green sustainable development strategy, Mengniu has steadily advanced its commitment to "carbon peak by 2030 and carbon neutrality by 2050", forming a virtuous circle of ecological protection and industrial development through "Hanhai farming and sand control and feeding industry", while strengthening the management of the first chain, promoting digital and intelligent transformation, and building a green value chain for China's dairy industry with upstream and downstream partners. Since the beginning of this year, Mengniu has continued to promote the implementation of the green sustainable development strategy, and has carried out 15 issues and 28 actions to drive comprehensive carbon reduction in the six major links of the entire industry chain. For example, in the Ulan Bu and desert of Inner Mongolia, Mengniu has planted 97 million trees in more than a decade and created a 200-square-kilometer oasis, which has not only completely changed the local ecological environment, but also pioneered the creation of organic pastures in the worldIn Qujing, Yunnan Province, Mengniu has built a zero-carbon factory ...... that has achieved both international and domestic certifications
As a participant and contributor to global dairy governance, Mengniu continues to deepen international cooperation and promote the formation of carbon reduction synergies. Mengniu is the first dairy company in China to join the global "Dairy Net Zero" climate initiative jointly launched by the Food and Agriculture Organization of the United Nations (FAO) and others. At the World Dairy Congress in August this year, Mengniu and global ecosystem enterprises jointly launched the Global Dairy Net Zero Initiative, advocating the creation of a green and low-carbon global dairy sustainable development community, and building a platform for carbon reduction exchanges and cooperation for the global dairy industry. This year, Mengniu has been ranked as a constituent stock of the Hang Seng Corporate Sustainability Index for three consecutive years, ranked third in the "ESG Pioneer 100 Index of State-owned Enterprises" by the State-owned Assets Supervision and Administration Commission of the State Council, and was named the "Most Improved Company in the Industry" by S&P Global. Not long ago, Mengniu was rated AA in the MSCI ESG ratings, not only leading the Chinese dairy industry, but also ranking as a "leader" among all 77 participating companies.
About the "two accelerations".The first is to accelerate channel optimization, firmly grasp emerging channels, cold chain capabilities, and township penetration, and do a thorough job of terminal execution to achieve rapid response to consumer needs. Mengniu empowers towns and villages to sink through digital tools, seizes opportunities in new retail channels and scenarios such as 020, communities, and live broadcasts, accelerates the transformation of RTM channels, and strengthens omni-channel control capabilities. Second, in terms of accelerating the development of new businesses, Mengniu adheres to consumer value-driven innovation, continues to create new products and open up new tracks, and constantly meets consumers' yearning for a better life. In February this year, Mengniu officially entered the professional nutrition track and launched the sports nutrition brand "Maisheng", opening up a new track of liquid protein supplements in China with liquid protein technology. In the future, Mengniu will continue to expand new tracks in the field of professional nutrition, enhance its innovation ability and category development ability, and continue to explore new business layouts.
About "One Center":It is what Mengniu insists on, Lu Minfang said, this is the starting point and driving force for the development of Mengniu's career. The core value of "consumer first, first first" is Mengniu's corporate value, that is, consumer demand first.
First, consumer experience first.
First, the well-being of consumers is the first.
Lu Minfang pointed out that in the future, Mengniu will strive to provide global consumers with more nutritious, smarter and greener products and services, and work hand in hand with global partners to jointly build a more inclusive, more open and more effective Mengniu, go through the cycle to the centennial vision, and jointly write a new legend of Mengniu's development.