China-based Yili Ranks Among Global Dairy Top 10, Changing the Industry's Worldwide Landscape

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Inner Mongolia Yili Industrial Group Co., Ltd.

Jul 11, 2014, 09:52 ET

BEIJING, July 11, 2014 /PRNewswire/ -- Rabobank, the Dutch multinational banking and financial services company, issued the latest 2014 Global Dairy Top 20 Report on July 9, 2014, in which China-based Inner Mongolia Yili Industrial Group Co., Ltd. (Yili) was the only Asian dairy enterprise to rank among the world's top 10 in 2014. This is the best achievement achieved by a Chinese dairy producer in the report's history and is the highest ranking attained by an Asian dairy manufacturer.

2014 Global Dairy Top 20 List (PRNewsFoto/Inner Mongolia Yili Industria...)

Rabobank analyst Tim Hunt regards Yili's entry into the top 10 as a landmark event showcasing the fast development of Asian dairy. This achievement can be partly ascribed to the huge market demand by China's economic development; robust expectations for growth across the dairy sector allows producers in emerging markets to accumulate enough capital, develop the motivation to participate, become an influencer and even improve the industrial chain globally, giving them the final say in resource allocation. Another influential factor is the public's rediscovery of the power of Chinese businesses as international consumers re-assess made-in-China products and services, and move them into their list of "want to have" items. Gradually these products and services are evolving into an indispensable part of day-to-day life.

The jump in ranking has another implication for Yili; the producer's role as a sponsor of the Olympic Games 10 years ago caused Yili to radically raise the bar in terms of its own expectations for both quality and brand awareness, as well as to undertake a full-scale restructuring of the enterprise. From milk source management to upgrading of products, from quality control systems to innovative research and development, from a globalized presence to localized market penetration, from the high level of demand in the world's fastest growing market to the aura of the Olympic Games, all of these factors and events have combined into an overwhelming level of strength, allowing Yili to win in the competitive international dairy market as well as provide an admission ticket to its standing among the dairy industry's global top 10. Finally, Yili entered the ranks of the world's top 10 dairy manufacturers for the first time this year, two years ahead of Yili's own expectations.

Yili started to create an overseas footprint last year by investing in a milk powder project in New Zealand and be entering into a strategic cooperation with the U.S.'s largest milk cooperative, Dairy Farmers of America, and the Italian dairy produce firm, Sterilgarda Alimenti S.p.A. At the beginning of this year, Yili expanded its research and development efforts abroad by establishing a European R&D Center with Wageningen University, a top-level university in the Netherlands. The two parties have also entered into a strategic agreement to set up the first Sino-Dutch food safety guarantee system. Industry insiders deem these overseas moves as having comprehensively improved Yili's control over the industrial chain and its own brand influence globally, further helping it become a dairy giant worldwide. These moves all factor into how Yili successfully jumped into the world's top 10.

Yili's comprehensive range of products, and, in particular, products with a high added-value and those made using the most technologically advanced production processes, are not only delivering strong performance, but are also accounting for an ever increasing proportion of our product mix. As a result of the added-value and the high-tech production, Mei Yi Tian yogurt ranked first among Yili's products in terms of year on year sales growth, followed by Zhenhu and Chang Qing. In addition, Satine milk, Pro-kido milk powder, QQstar Children and Chocliz continued to demonstrate strong growth in sales and to gain in popularity among consumers. At the same time, Wei Kezi Milk Shake and Ambrosial yogurt, among other new offerings, sold well soon after being released. Both products were on the list of Yili's best performers and have played a leading role in enhancing the company's brand image and promoting its business growth. According to the latest data from Nielsen, Yili's strong portfolio continued its upward trend, with sales growing at an average rate more than double the industry average during the first four months of 2014.

Entering the league of the world's top 10 dairy producers is a milestone and a new beginning for Yili. It is expected that Yili will further consolidate its leading position in the global dairy industry and accelerate the healthy and sustainable development of the sector by leveraging its local advantages and executing on its global operations strategy.

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