Two Chinese Dairy Companies see 2 distinct drivers for growth

China’s two major dairy companies, Mengniu Dairy and Yili will see stronger growth in the future due to 2 major growth drivers.
Mengniu Dairy, China’s 2nd largest dairy firm said that it will rely on pasteurised milk and market-share gains outside China to drive its growth. With its strong control of upstream dairy farms, Mengniu is well-placed to boost sales of pasteurised milk, potentially one of fastest-growing dairy segments in the next 5 years. Mengniu could also see its sales growing in overseas market like Indonesia. Analyst projected Mengniu net profit to grow 10% in 2020.
Meanwhile, Mongolia Yili Industrial Group, or better known as Yili, has been diversifying into health beverages, and it has been rolling out new products and recruiting distributors. The health beverage segment enjoys strong growth, coupled with Yili’s strength in execution.