As foreign investors begin to buy stakes in established Chinese companies, and domestic operations expand, the major dairy products producers in China are experiencing serious brand competition for the first time.
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Including Guangming, Sanyuan, Sanlu, Yili and Wandashan, ten major brands control over 50% of the nations milk and 30% of its milk powder. The competition is becoming increasingly intense however as more than 40 joint ventures or wholly owned dairy companies vie for market share.
French giant Danone recently bought into Chinese company Guangming, and Sanyuan has issued a buyout of the Kraft unit in China.
Other multi-national companies, including Swiss behemoth Nestlé, are stepping up their Chinese operations to bring domestic corporate strategy in line with their global approach.
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By GlobalData
