First, Mengniu released Junlebao
On the evening of July 1, Mengniu Dairy announced that it would sell 51% of its shares in Shijiazhuang Junlebao Dairy Co., Ltd. (hereinafter referred to as Junlebao) at a price of more than 4 billion yuan. This is a business deal for both parties. After Mengniu let go, Junlebao won the opportunity of independent development, and Mengniu also got a lot of cash from this transaction and made a lot of profits.
The announcement shows that Mengniu signed a share transfer agreement with the buyer Penghai Fund and Jungan Management on June 3, 219, and sold all its shares in Junlebao by cash payment, of which Penghai Fund will hold 26.6994% of the shares in Junlebao, while Jungan Management will hold 24.36%. At present, the transaction will not be finalized until a series of preconditions are reached, including the approval of the competent authorities.
For the purpose of selling Junlebao, Mengniu said that the board of directors believes that the sale of Junlebao is in line with Mengniu's development strategy of continuously focusing on star dairy products. By selling, Mengniu can optimize its existing brand portfolio, concentrate on developing its core business and expand star dairy products with high growth and profit prospects, and strengthen its overall financial situation.
In fact, most people didn't expect that Junlebao turned out to be an enterprise owned by Mengniu. It was not until Mengniu sold him for 4 billion yuan that everyone discovered that this little guy had become a giant with a value close to 1 billion.
second, what did you experience from Sanlu to Mengniu Junlebao?
According to Qixinbao's data, Shijiazhuang Junlebao Dairy Co., Ltd. was established in 1995 and is the largest yogurt production base in North China. At present, group management has been formed, with 8 production plants (subsidiaries), including 4 in Hebei (Shijiazhuang), 1 in Jiangsu, 2 in Heilongjiang and 1 in Shaanxi. The company has more than 4, employees. At present, the products have formed more than 5 items such as sour milk from Junlebao and Dongfang Zhiwei series, pure milk, colored milk and milk drinks. According to the monitoring data of international authoritative investigation organization AC Nielsen, the market share of yogurt in Junlebao ranks fourth in China.
However, Junlebao, who feels very bullish at this stage, was not so bullish before. According to public media reports, Junlebao had a history that he didn't want to talk about. When Junlebao was just founded, Junlebao adopted the mode of enjoying the cool with his back against a big tree. He cooperated with Sanlu Group, another well-known brand of "International Village". Because Sanlu was the largest dairy company in China at that time, it was very common for Junlebao to adopt the manufacturing field for development.
In 1999, Sanlu Group invested in Junlebao in the form of brand and cash, in which the brand price accounted for 29% of the shares and 7, yuan in cash accounted for 5% of the shares. As a result, Junlebao became a subsidiary of Sanlu Group to produce liquid milk, and changed its name to Shijiazhuang Sanlu Dairy Co., Ltd. For a long time, Junlebao was a subsidiary of Sanlu. Although it had a completely different production system and technical standards from Sanlu, Junlebao was still a member of Sanlu. Until Sanlu had an accident, the melamine incident of that year dropped Sanlu to the altar in one fell swoop and even went bankrupt.
At that time, faced with the dilemma that there were no eggs left under the nesting, Junlebao resolutely chose to turn around and leave. In 29, he used his priority status to "buy back" the shares (17%) held by Sanlu Group with 25 million yuan, and in 21, he resold his own shares to another well-known dairy brand: COFCO Mengniu, which held 51% of the shares, and became the controlling shareholder of Junlebao.
3. Why does Junlebao fly solo?
After the transformation from Sanlu to Mengniu, in fact, Junlebao is also weakened. Although it won't lift its head for many years like other enterprises under Sanlu's banner, it is impossible to say that it has no impact. However, as the saying goes, all storms are just like people's experience. In fact, Junlebao has embarked on the fast lane of development in every cloud has a silver lining.
first, stop being a hero behind the scenes. Junlebao was actually a complete behind-the-scenes hero in the Sanlu era, basically OEM Sanlu production, which is why some people still think that Junlebao's predecessor was Sanlu over the years. After entering the Mengniu era, Junlebao did not label Mengniu again. Even after Junlebao changed its name, he still used his own brand and spent huge sums of money on marketing. Let Junlebao, a once unknown brand, continue to develop into an influential brand in the yogurt market in China. It can be said that if it were not for the Sanlu incident in that year, there would be no independent development of the Junlebao brand, which became the foundation of Junlebao's success.
Secondly, remould milk powder against the market. For a long time after the Sanlu incident, it can be said that it was the winter of domestic milk powder enterprises, and almost all Chinese people lost their confidence in milk powder. At that time, foreign milk powder brands became popular. According to the data disclosed by the General Administration of Customs, from 28 to 217, the number of imported infant milk powder in China increased from 4, tons to 296, tons, an increase of more than 7 times. The market share of domestic milk powder has dropped from more than 65% to less than 3%, and the market share of first-tier cities is only 15%. For a long time, about 7% of consumers are afraid to buy domestic milk powder, and the living environment of China milk powder enterprises has become a "chicken feather". However, in this market, Junlebao dares to take this seemingly dead-end track and make its own milk powder production. In April 214, Junlebao officially entered the infant milk powder industry. After all, the domestic milk powder market did not exist. This time coincided with the recovery of domestic milk powder, and Junlebao successfully entered the domestic milk powder track. With the opportunity of infant formula recovery in China, the sales of Junlebao's milk powder increased from 7 million in that year to 5 billion in 218.
third, focus on cost-effective layout expansion. For Junlebao, on the one hand, he used his yogurt advantage to keep marching in major markets, so that yogurt originally confined to northern China gradually entered the southern market and occupied a place in the market. On the other hand, it played two ways that most dairy companies didn't do, that is, cost-effective anchoring and e-commerce market. Originally, high price could be said to be the main theme of infant milk powder market, but Junlebao broke this rule and directly hit the price of infant milk powder around 13 yuan, making it a catfish in the market, but it also allowed Junlebao to firmly occupy the price-sensitive third-and fourth-tier sinking market, and this concept was also done by a company named Pinduoduo a few years later. At the same time, Junlebao has also made great efforts in the e-commerce market, which has become a model for dairy enterprises in China to March into e-commerce. Under the influence of these two strategies, Junlebao achieved rapid development, which also laid the foundation for its solo flight today.
In 218, Junlebao's overall income exceeded 13 billion yuan, and Mengniu achieved a high return on investment of 1 times from 4 million to 4 billion yuan because of the sale of Junlebao. From the calculation that Mengniu sold 51% of Junlebao's equity for 4 billion yuan, Junlebao's valuation has been at least close to 1 billion yuan. According to many media reports, Junlebao is now on the way to IPO, but such a company that started from OEM has become a giant.
It can be said that Junlebao achieved the counterattack from diaosi to the giants. Do you understand this story?