Mengniu Dairy announced on March 26 that in accordance with the group's strategic arrangements, Mr. Lu Minfang was promoted to vice chairman, resigned as president of the company and continued to serve as executive director. Mr. Gao Fei, the former senior vice president and head of the normal temperature business unit, took over as president of the company and served as executive director. This management adjustment is an important decision made by the Board of Directors of Mengniu Group based on medium- and long-term strategic considerations, and it sends a signal and confidence in making Mengniu bigger and stronger.
Strategic Pilot and Full Take-off
In September 2016, Lu Minfang was appointed as the president of Mengniu Group in the face of crisis. After taking office, he comprehensively strengthened corporate operation and management and led Mengniu back to the growth track through measures such as implementing strategic business layout, strengthening corporate governance capacity building, and promoting sustainable development. Since 2016, Mengniu’s performance has exceeded multiple tens of billions, its scale has doubled in eight years, and it has firmly ranked among the top ten globally.
During the 2019 International Import Expo, Lu Minfang introduced "Daily Quotes" in an interview with the media.
clarifies ideas and forward-looking layout. Lu Minfang led the team to firmly believe that "whoever gets the milk source wins the world" and completed strategic investments in large-scale animal husbandry groups such as Modern Dairy and China Shengmu, laying a solid foundation for Mengniu to return to growth. With the upgrading of dairy consumption, he focused on opening up new categories, taking the lead in deploying the fresh milk business segment, innovatively launching the "Daily Fresh Words" brand, and creating a new benchmark for high-end fresh milk in China. Focusing on the important strategic opportunity period in China's cheese market, he led the acquisition of the leading cheese "Miao Ke Landuo", promoting the iterative upgrade of the dairy industry from "drinking" milk to "eating" milk.
improves governance and accelerates innovation. After taking office, Lu Minfang decisively launched organizational structure adjustment and new business unit reform, forming a consumer- and market-oriented organizational model and realizing "let people who can hear the cannon make decisions." Under his leadership, Mengniu has been unswerving in independent research and development and innovation. The "Key Technologies for Safety Control and Quality Improvement of Milk and Dairy Products" project won the second prize of the National Science and Technology Progress Award. The self-developed HMO has been approved and certified by China and the United States. For the first time, the "stuck neck" problem of the dairy industry has been solved. Seize new opportunities in the development of digital intelligence and create an AI-driven digital intelligence "double flywheel" to continuously improve quality and safety, strengthen consumer communication, and achieve cost reduction and efficiency improvement.
In November 2018, Mengniu’s Indonesian factory officially opened.
International vision expands globally. Under the leadership of Lu Minfang, Mengniu has accelerated its internationalization process. The Yashili factory in New Zealand and the Youyi c factory in Indonesia have been completed one after another. Mengniu has strategically acquired Australian raw milk processor burra foods, well-known organic infant milk powder and food brand Bellamy's, and Indonesia. Ai Xue, the largest ice cream brand, operates in more than ten countries and regions in Southeast Asia, Oceania, North America and other regions, turning Chinese cattle and world cattle from dreams into reality.
We must strengthen inheritance and culture to establish the soul
Lu Minfang attaches great importance to the construction of corporate culture, continues to summarize the legendary journey of Mengniu’s entrepreneurial development, precipitates and refines corporate culture and Mengniu spirit, builds and unites consensus on corporate development, and provides sustainable power for Mengniu’s long-term high-quality development.
On January 18, 2021, Mengniu’s corporate culture was renewed and upgraded.
Lu Minfang led the management team to put forward the mission of "Every drop of nutrition blooms in every life" and the vision of "Two billion consumers of grassland cattle world cattle's most loved nutrition around the world", establishing the Mengniu spirit of "born to be strong and compete with yourself" , clarified the four core values of "consumers first, being imaginative, letting talented people bloom, being upright and honest," and answering the question "Where do we come from and where do we want to go?" "This ultimate proposition leads Mengniu to steadily move towards its centenary development vision.
On December 20, 2017, Mengniu officially became the official global sponsor of the 2018 World Cup in Russia.
Mengniu continues to integrate the corporate spirit of "Born to Be Strong" into its brand assets and uses its strength to communicate with the world. Long-termism is Mengniu’s firm strategy in brand building.In recent years, Mengniu has reached strategic cooperation with top domestic and foreign IPs such as the Olympic Games, FIFA World Cup, Chinese Football Association Team China, China Aerospace, Shanghai Disney, Beijing Universal Resort, etc., and is committed to bringing health and happiness to consumers and creating a consumer-centric brand. Love the world-class brands.
Green Transformation Responsibility Leads
Mengniu is a pioneer in the construction of ESG among Chinese enterprises. Under the leadership of Lu Minfang, Mengniu has elevated sustainable development to the level of the group's development strategy for the first time, established a three-level management structure of "Board of Directors-Management-Each Business Unit", driven all employees to practice green actions, and created a complete We have established a sustainable development governance system, launched a green sustainable development strategy, and worked with the upstream and downstream of the industry chain to create a green value chain for the dairy industry, setting a benchmark for the green and low-carbon transformation and development of the dairy industry.
In early 2022, Mengniu released its green sustainable development strategy.
Mengniu adheres to ecological priority and green development. Its subsidiary Shengmu Forage has been cultivating green land for more than ten years, planting a total of 97 million desert trees and greening more than 200 square kilometers of desert. Mengniu has built a total of 30 national-level green factories, and built China's dairy industry's first international and domestic dual-certified zero-carbon factory in Qujing, Yunnan, achieving net-zero emissions.
On July 29, 2021, Mengniu Group’s fourth collective wedding was held.
Responsibility to family and country is Mengniu’s unchanging sentiment. During the epidemic, Mengniu donated a total of 740 million yuan in money and materials, creating "the largest food donation record in human history" and won the 11th "China Charity Award". Mengniu persists in carrying out inclusive nutrition projects and has donated a total of 1 billion yuan, benefiting 25 million students. At the same time, Mengniu cares deeply about its employees, launching the "Employee Happiness Plan" and launching six major plans including the "Filial Piety Plan", allowing 40,000 Mengniu people to share development dividends.
Based on its outstanding performance in sustainable development, Mengniu has been repeatedly upgraded from "bbb" in the msci esg rating, and jumped to "aa" in 2023, the highest rating in the industry. Mengniu continues to be a constituent stock of the Hang Seng Corporate Sustainability Index, ranks first in the food and beverage industry in the State-owned Assets Supervision and Administration Commission of the State Council's "ESG Pioneer 100 Index of Central Enterprises", and is rated as the "Best Progressive Enterprise in the Industry" by S&P Global.
Continue to struggle and win the battle for the future
Currently, the development of the dairy industry is facing pressures and challenges such as a periodic surplus of raw milk, weak consumption, and intensified industry competition. Focusing on the new era, new stage, and new changes, Lu Minfang pointed out that facing the second half of the dairy industry, Mengniu will continue to improve profitability, optimize business structure, overcome industry cycles, and resolutely become bigger and stronger.
Mengniu customer annual meeting in December 2019.
Gao Fei, the new president, joined the company in 1999 when Mengniu was founded. He has been deeply involved in the dairy industry for many years, led the development and development of Mengniu’s sales system, and made outstanding contributions to the development of the company. He has extensive experience in corporate management, brand building, talent training, cultural inheritance, innovation and development, etc. Since 2016, Gao Fei has taken the lead in proposing the "championship strategy" in the normal temperature business unit, achieving a year-by-year increase in normal temperature performance. Liquid milk has achieved double-digit growth for five consecutive years, becoming Mengniu's well-deserved "ballast stone."
Gao Fei led the team to create the high-end brand "Deluxe" and successfully opened up China's high-end dairy product market. Deluxe has become the world's largest single product in the dairy industry with annual sales exceeding 30 billion yuan. In addition, Gao Fei also directed Mengniu’s marketing campaigns for the Russia World Cup and Qatar World Cup, creating many industry classic cases and comprehensively enhancing Mengniu’s brand value. It is particularly worth mentioning that in the process of Mengniu's digital transformation, Gao Fei led the construction of the Ningxia fully digital intelligent super factory, which achieved the world's highest human efficiency ratio of "100 people with an output value of 10 billion", and created the industry's most advanced Intelligent manufacturing demonstration benchmark.
On May 28, 2023, Gao Fei delivered a speech at the inauguration and commissioning ceremony of the Mengniu Ningxia factory, the world’s first fully digital intelligent chemical factory in the dairy industry.
Let’s start again. China's dairy industry has huge potential and a vast market, and Mengniu is full of confidence in the future of the industry.Under the leadership of Gao Fei, Mengniu will resolutely shoulder the responsibility and mission of the national dairy team and industry leader, closely focus on the overall leading goal of "more nutrition, smarter, and greener", continue to cultivate and develop new productivity in the dairy industry, and accelerate the construction A world-class dairy enterprise with global competitiveness strives unremittingly to create a better life for the people and contributes new and greater strength to the revitalization of the national dairy industry and Chinese-style modernization.
