Mengniu once again proved with the financial report that "not all milk is called Terensu". On March 30, Mengniu Dairy (02319. HK) announced its 2021 financial report, showing revenue of 88.1415 billion yuan, an increase of 15.9% year-on-year, and net profit attributable to the mother of 5.0255 billion yuan, an increase of 42.6% year-on-year.
Among them, terunsu's annual sales exceeded 30 billion yuan, accounting for about 34% of the overall sales - this figure makes terunsu a huge super product in China's dairy industry so far, creating the "Terunsu miracle" of China's dairy industry.
Close to the "Global Dairy 20"
Terunsu was born in 2005 and has become a single product with sales of more than 30 billion yuan (about 5 billion US dollars) in 17 years, which is rare in the global dairy industry and even the beverage FMCG industry.
The sales of one brand in Terunsu are almost equivalent to the annual revenues of two companies in the United States, Schreiber and Muller in Germany, and these two companies are the established giants of the 2021 "Global Dairy 20" of the Dutch Cooperative Bank.
More importantly, Terensu is not a static term, but has evolved over the course of 17 years. In 2008, Terunsu keenly captured the market trend of healthy and organic, launched organic milk, and successfully opened up an organic track in the high-end market; in 2016, Terunsu enriched the matrix of low-fat, grain, high-calcium and other products to meet the needs of consumption upgrading with a new height of nutrition; in 2018, Terunsu launched the organic dream cover in the world, bringing consumers a more portable and nutritious consumer experience; in 2021, Terunsu launched a desert organic pure milk that practices the concept of sustainable development. Focusing on 3.8g of milk protein and 125mg of native high calcium, it once again defined high-end organic milk with strong strength and strongly promoted the growth of Mengniu's performance.
It's not just Terunsu that "keeps popping up"
The success of Terunsu has also led to the "continuous explosion" of other categories of Mengniu. Mengniu low temperature business aims at the new highland of national physical health nutrition, while developing new products and new flavors, it constantly breaks through the research and development of probiotic strains, breaks through the technical difficulties of China's low-temperature dairy industry, and has maintained the market-leading star single product Youyi C for many years, achieving an industry breakthrough of 100ml live bacteria content of up to 50 billion yuan, more suitable for the stomach and intestines of the Chinese people; daily fresh language launched "baby's first bite of fresh milk" excellent care A2 fresh milk, Launched 4.0 fresh milk on the Jingdong Super Brand Day, with more high-quality milk protein, create a new benchmark for nutrition, and create a benchmark for the high-end fresh milk market with more fresh nutrition and more mellow taste; "With Change" successfully creates a brand phenomenon-level explosive product - caramel caramel pearl flavor ice cream by strengthening category associations and catering to the trend of tea drinking, realizing the brand's high-repurchase explosive product creation.
At the same time, Mengniu is also constantly innovating consumer communication methods to create a more youthful, warm and responsible brand image. "Daily Fresh Words" recycles plastic bottles, creating a recycled environmental protection road for waste plastics; "with change" ice cream signed the virtual idol RICHBOOM for the first time, with the exuberant "young force" repeatedly out of the circle; Terunsu takes "better" as the brand concept, closely follows the pulse of the times, preheats and ferments through new product listings, and forms a full-link coverage with young ways such as unboxing vlog, circle of friends advertising, opinion leader sharing, platform planting, etc., opening up a closed-loop link of "from sound volume to sales" product effect. Constantly strengthen the brand's "more trendy" and "more playful" young image, and create industry-leading consumer communication channels.
A unique consumer culture
Behind the miracle of Terunsu's creation of large items lies in the formation of a unique consumer culture. From 2015 "Find your nutrition, start your better 2015", to 2019 "be a better yourself", and then to 2021 "support every better you, better without standard answers", Terunsu with the continuous evolution of the target population, with different forms of content and creativity, enhance brand influence, strengthen the identification of many consumers with the brand. On this basis, Terunsu continued to lay out and invest in the Mingshihui, accumulating nearly 20 million fans in 2021, of which more than 25% were core members, and sales doubled year-on-year.
At the level of brand communication in the leading industry, Terunsu preheats and ferments through new product listing, and forms a full-link coverage through young ways such as unboxing vlog, circle of friends advertising, opinion leader sharing, platform planting, etc., and opens up a closed-loop link of "from sound volume to sales" product effect. With this "martial art", in 2021, it has created a classic case of Terunsu Desert organic milk that has become a popular model of Internet celebrities once it is listed. In addition, products such as Terun Su hi Milk0 fat milk, which focus on young users, are also constantly creative, not only launching limited packaging, but also combining blind boxes, peripherals and other ways to strengthen communication with young people, and constantly strengthening the brand's "more trendy" and "more playful" young image.
Improving quality is a key driver
The reason why Mengniu has "exploded" in recent years is to optimize the allocation of resources on a global scale and comprehensively create "world quality" in the dimensions of technology introduction, brand layout, standard upgrading, corporate governance and so on. Mengniu's continuous promotion of the "EU Benchmarking Project" has made breakthrough progress in 2021, and has upgraded 114 raw material indicators and 38 product indicators with multiple measures to achieve the quality of major categories to meet EU standards, becoming the only enterprise in China that has been certified by SGS CSTC.
At the same time, Mengniu has also continuously strengthened the synergy between Oceania's high-quality milk sources and leading production capacity to further strengthen the global resource allocation capabilities; established a joint venture with Coca-Cola to form a "Keniu" company to bring the high-end dairy and membrane technology that has swept North America to the Chinese market; the eighth phase of the China Dairy Industrial Park project was successfully put into operation, providing strong support for China's dairy industry to seize the "four highlands" of scientific research and innovation, intelligent manufacturing, supply chain trading, organization and talent.
2021 is the first year of the "create a new Mengniu" strategy. In 2021, Mengniu's financial report has achieved good results, bringing surprises to the industry with a large single product Terunsu, and it is expected that in the future, Terunsu can really go out of China and create another miracle in the global market.
(This article does not constitute any investment advice, and the content of information disclosure is subject to the company's announcement.) Investors operate accordingly at their own risk. ）