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April 19, 2021updated 21 May 2021 4:00pm

China D2C dairy business Adopt A Cow gets KKR backing

By Dean Best

Adopt A Cow, a direct-to-consumer dairy firm based in China, has received investment from private-equity major KKR.

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Set up in 2014, Adopt A Cow is a vertically-integrated business with a farm in eastern China through to the sales of branded milk, cheese and yogurt products.

Financial terms were not disclosed. KKR said Adopt A Cow had “become one of the fastest-growing direct-to-consumer brands in China” over the “past five years”, without providing further details. It added the firm had “accumulated more than 10m loyal customers”.

Chris Sun, a managing director on KKR’s investment team in China, said Adopt A Cow had a “disruptive strategy to change the way dairy is produced, marketed and sold to customers”.

He added: "Consumption upgrades and food safety are among the key focused themes for our investments in China. As a traditional industry, the dairy sector in China is going through an exciting period of technological innovation, driven by the fast development of IoT, increasing penetration of e-commerce and digital marketing, and higher demand for naturally healthy and nutritious products."

In a statement, Adopt A Cow said it plans to use KKR's investment to speed up its building of dairy farms and factories, including "bringing in high-quality Australian dairy cows" and spending on its operations "to enhance efficiency, improve product quality and brand competitiveness".

Xu Xiaobo, the founder of Adopt A Cow, described the investment as an "exciting new chapter" for the business, adding: "KKR has a proven track record of investing in the dairy sector and providing value-added operational support to homegrown technology champions, and we look forward to working with them to take Adopt A Cow to its next level of success."

Related Companies

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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