Eurbest is a Chinese company that specializes
in the production and sale of infant formula and goat milk. According to a
recent report from the analytics company Qichacha, Eurbest’s shareholding
information changed on March 2. According to the report, the French dairy giant
Danone paid RMB 287 million in exchange for 95% of Eurbest's shares and became
the new controller of Eurbest, while the original shareholder, Dechun Wang,
withdrew control. Deliang Wang continues to hold 5% of Eurbest's shares.
According to Danone’s reply to a news
reporter, Danone has entered into a strategic partnership with Eurbest to
invest in and develop its local infant formula factory and products. The
transaction is expected to be completed during the first quarter of 2022.
Danone invests in multiple large-scale infant formula companies in China
Danone is a well-known multinational food and
beverage company with operations in more than 120 markets around the world,
with more than 100,000 employees, and sales revenue of over 24 billion Euros in
2021. Danone also owns a series of infant formula milk powders such as Aptamil
and Karicare, and beverage brands such as Evian and Mizone.
Eurbest was founded in 2010, and was mainly
involved in imported and domestic infant formula, cattle and goat milk powder,
infant food supplements, and other series of products. Its representative
products include the infant formula goat milk powder "Yang Zizi", as
well as formula milk powders "Osuli" and "Kewei'an."
According to information from the Eurbest official website, Eurbest has nearly
3,000 distribution customers, and its distribution covers more than 10,000
infant stores, and its sales network covers 1,500 county markets.
Before the investment in Eurbest, Danone
acquired 100% of the equity of Maigao Dairy (Qingdao) Co., Ltd. in 2020, and
launched the locally produced grass-fed dairy infant formula product
"Yunhui" by using the formula registration qualification of the
Maigao factory in 2021. Furthermore, not long before Danone invested in
Eurbest, Mead Johnson China acquired the goat milk powder brand Milk Goat.
Chinese infant milk powder brands threaten foreign dairy companies in
Chinese market
The rise of Chinese infant milk powder brands
has threatened foreign dairy companies such as Danone in the Chinese market.
Coupled with the ongoing pandemic, Danone's international business growth has
declined sharply. Due to the pandemic and the continuous closure of ports in
Europe, Oceania, and Hong Kong in 2020, Danone China's cross-border infant milk
powder business fell by 60% during the third quarter of 2020. Danone said it
would shrink its cross-border business. Danone's 2021 financial report shows
that in 2021, the company achieved a net sales revenue of over 24 billion
euros, a YoY increase of 3.4%. However, during the first quarter of 2022, the
company's profit fell by 0.2% YoY.
Another international giant, Nestlé, also saw
total sales increase by 3.3% in 2021 to USD 92.4 billion. However, the
company's sales growth in China in most categories was also partially offset by
a decline in sales of infant nutrition.
For more information, please check our Dairy Products
China News.
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