According to a report in the South China Morning Post, French food giant Danone has increased its stake in the Bright Dairy and Food Company, becoming it’s third-largest retailer.

The world’s biggest producer of dairy products now owns 20% of the Chinese dairy and industry sources see this move as a step towards Danone taking a controlling stake.

The Shanghai-based dairy company is the third-biggest dairy company in China, behind Mengniu and Yi Li Industrial. However, the two front-runners have been pulling away from Bright who reported a 33% decline in 2005 net profits.

Sales plummeted in June after reports appeared suggesting that one of Bright’s factories had recycled out-of-date milk. Since then, consumers have rejected Bright Dairy products and the company has invested heavily in its marketing spend in an attempt to win back custom.

Profits also felt the negative impact of acquisitions in Jiangxi, Tianjin and Jingyang, which posted losses for the year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Yi Li and Mengniu have both focused on UHT milk, the fastest growing category in the market, something Bright has as yet failed to do.