China Mengniu Dairy, Coca-Cola establish pasteurized milk venture: report

14, May. 2020


TOKYO, NNA – Major fresh milk producer China Mengniu Dairy Co. and global beverage giant Coca-Cola Co. have set up a pasteurized milk production joint venture to further penetrate the growing market in the world’s most populous nation.

The two companies obtained approval for the establishment of the new unit in late April, according to a report by Beijing Business Today online, citing sources of both firms responsible for the matter. Details of the JV are not known.

They will launch a new brand of pasteurized milk in China through collaborations in product development, processing technology, brand recognition and distribution channels, the sources were quoted as saying in the report.

The move is part of efforts by the U.S. beverage maker to develop a full lineup of soft drinks such as carbonated drinks, fruit juice and other beverages in the Chinese market.

For China Mengniu Dairy, the partnership with Coca-Cola is anticipated to help it compete with Inner Mongolia Yili Industrial Group Co., a rival in the fresh milk segment.

Agriculture conglomerate COFCO, officially known as China National Cereals, Oils & Foodstuffs Corp., is deemed to have played a role in realizing the alliance between the Chinese and U.S. drink makers.

The state-owned conglomerate established China’s first bottling joint venture with Coca-Cola. It is also a parent company of China Mengniu Dairy, according to the report.