General Mills Inc. on Monday launched its Yoplait brand in China, its first yogurt offensive there since it bought a controlling stake in the international Yoplait company.
General Mills starts selling Yoplait in China
General Mills wants a piece of the country's $10 billion yogurt market.
June 9, 2015 at 2:32AM
Three new yogurt lines will be rolling out in hypermarkets (similar to superstores like Target in the United States), supermarkets and convenience stores in Shanghai.
"Our entry into China with Yoplait is a major milestone in General Mills history," General Mills CEO Ken Powell said in a statement.
Golden Valley-based General Mills, which has long licensed the Yoplait brand in the United States, in 2011 bought a 51 percent interest in France-based Yoplait S.A., the world's second leading yogurt company with nearly $4 billion in annual sales.
Yoplait broke ground on its first factory in China in late 2012. Construction was completed this spring, and Yoplait has started shipping product.
Extending Yoplait's reach in China is a significant part of General Mills' long-term strategy with the brand. Yogurt is a $10 billion category in China, with sales growing at a double-digit pace, according to market researcher Euromonitor.
However, the market is dominated by three Chinese yogurt makers and one Japanese company. Together, they have a market share of about 68 percent, according to Euromonitor. France-based Group Danone, the world's biggest yogurt maker, has but a 1.7 percent share in China.
General Mills is focusing on Shanghai first and then plans to grow the Yoplait brand on a city-by-city approach.
Yoplait's introduction is also a big step for Mills' China operation, which has grown at a 15 percent rate over the past four years and has nearly $700 million in sales. Haagen-Dazs ice cream makes up more than half of those sales, while Wanchai Ferry dim sum accounts for another third. Snacks make up the rest.
"With the tremendous economic growth in China, consumers are increasingly demanding better quality and experience of foods," said Gary Chu, president of General Mills Greater China.
The three Yoplait products being introduced in China as "premium" yogurt are "Perle de lait," a thick and creamy French-style yogurt; "Panier de fruits," a fruit-on-the-bottom product; and "O'Fruit," a drinkable yogurt.
Mike Hughlett • 612-673-7003
There were no optimal outcomes. But there was also a lot of good work, and change that made sense.
