History & Origin . . . . . . . . . . . . . . . . . . . 3

Early Evolution . . . . . . . . . . . . . . . . . . . . 4

Global Expansion . . . . . . . . . . . . . . . . . 5

Modern Business . . . . . . . . . . . . . . . . . . 6

Company Structure . . . . . . . . . . . . . . . 7

Summary . . . . . . . . . . . . . . . . . . . . . . . . 8

Social Media Accounts . . . . . . . . . . . . 9

2

Mengniu Dairy Group was founded in 1999 by Niu Gensheng.

Niu Gensheng who began his career in 1978 working for a dairy in

Hohhot, capital of the Inner Mongolian Autonomous Region in

North-central China.

In 1998, Niu, worked his way up to become the Vice CEO of Inner

Mongolia Yili Groupm the largest dairy manufacturers in China.

Niu, set out on his own and took over a small dairy producer,

Mengniu Dairy

In five years, Mengniu was a listed company on the Hong Kong

exchange.

3

By 2005, Mengniu was operating 14 production sites, processing

2.8 million tons of liquid milk and selling liquid milk products, ice

cream and other dairy products.

The turnover had reached $1.3 bil-lion, only $200 million behind

his old employer Yii, the market leader.

In 2006, Mengniu made a joint venture with the European dairy

giant, Arla Foods.

Together, the companies established Mengniu Arla (Inner Mongolia)

Dairy Products Co. Ltd

The goal was to build the best milk powder brand in China

In one year, Mengniu Arla opened as one of the world’s most

advanced dairy R&D centers

The company advertised hugely throughout China, sponsoring the

Chinese space program

4

In December 2006, Mengniu signed a series of contracts with

Danone to set up three yoghurt joint ventures in Inner Mongolia,

Beijing and Ma’anshan but the partnerships failed.

The company’s shares took a hammering on the Hong Kong Stock

Exchange by an injection of capital from state-owned COFCO Ltd.,

China’s largest food importer and exporter, plus with private

equity cash in return for 20% of the equity.

By the end of 2009, Mengniu was again one of the top 20 global

dairy companies, a year later made number sixteen in the world

and, both in volume and value terms, number one in China.

In 2011, sales reached a new high of just over $6 billion, with 90%

in liquid milk products, 9% in ice cream and 1%.

Milk Deluxe, Champion, Future Star, Fruit Milk Drink and Youyi C all

enjoyed strong double-digit growth, with 27% in 2012

5

It has export markets in Malaysia, Singapore, Taiwan and the

Philippines

These export markets suddenly closed after suffering a mass de-

listings

By 2009, Mengniu was again one of the top 20 global dairy

companies

A year later, the company made to number sixteen in the world

and, in both volume and value terms, number one in China

6

In 2011, sales reached a new high of just over $6 billion, with 90%

in liquid milk products, 9% in ice cream and 1% in liquid milk

UHT accounted for a steadily declining 61% with the more strongly

branded beverages making 25% and Yoghurt 14%.

Milk Deluxe, Champion, Future Star, Fruit Milk Drink and Youyi C all

enjoyed strong double-digit growth, moved from 17% in 2008 to

27% in 2012

With its strong and branded portfolio that decided Arla to take a

6% stake in mid-2012, a closer cooperation it is hoped will increase

Chinese five-fold by 2016

7

Mengniu followed the pattern of buying up a lot of dairies because

it will also buy the scale to invest in the production of other dairy

products

Mengniu also depended on better technology enabling more

differentiated products and effective branding with its joint venture

to Arla Foods

8

Mengniu was established by Niu Gensheng which in five years was

a listed company on the Hong Kong exchange

The joint venture with the European dairy giant, Arla Foods, helped

the company to be in the number one spot in the Chinese dairy

industry

9

Website: www.mengniuir.com/html/

10