Junlebao Takes 30% Stake in Yogurt Chain More Yogurt

This is an English adaptation of a FoodBud historical article originally published on November 8, 2023.

According to Yicai, Junlebao Dairy announced on the evening of November 8, 2023 that it had formally taken a 30% stake in freshly made yogurt chain More Yogurt. The companies did not disclose the transaction value.

The move comes as upstream dairy companies and downstream beverage chains continue to move into each other's territory. New Hope Dairy previously acquired a stake in yogurt tea brand A Yogurt Cow in a deal valued at RMB 385 million, while tea chain Guming has also invested in Adopt A Cow.

What The Partnership Covers

Under the agreement, Junlebao Dairy Group will make a strategic investment for 30% of the brand-holding company behind More Yogurt. The two sides will also cooperate across dairy ingredient supply, new product R&D, food safety, and operating management.

For Junlebao, the investment gives its yogurt business a stable downstream customer at a time when the broader yogurt category has been recovering slowly after pandemic-era restrictions on consumption occasions.

More Yogurt's Chain Footprint

More Yogurt is described in the source as China's largest freshly made yogurt chain, with more than 1,600 stores. Around two-thirds of those stores are in first- and second-tier cities.

Business registration information cited by Yicai shows the brand's company is Shanghai Boyi Catering Management Co., Ltd., founded in 2014. Zhao Bohua holds 55% and Gu Hao holds 45%.

In July 2023, the brand drew consumer attention after running an online survey about expected pricing for a planned Musang King durian milkshake.

Ingredient Supply May Shift

More Yogurt previously stated on its website that it used yogurt from Ulanqab, Inner Mongolia, as an ingredient. Industry observers cited by Yicai said Junlebao is also a major player in chilled yogurt, and that dairy ingredient supply and research support are core parts of the strategic cooperation, so the ingredient source is expected to shift to Junlebao.

Independent dairy analyst Song Liang told Yicai that the partnership is complementary: Junlebao can become More Yogurt's main raw-material supplier through the strategic stake and build a retail channel that reaches consumers directly, while More Yogurt can use Junlebao's R&D system to support business upgrades.

Why It May Not Become The Industry Norm

The yogurt category has declined overall in recent years as consumption occasions were disrupted. At a recent industry forum, Zhao Hui, general manager for northern China at Kantar Worldpanel, said the yogurt category was still trending downward.

Domestic dairy consumption in 2023 showed only a weak recovery, while market competition intensified quickly. Even so, Song Liang said dairy is already a fully competitive market, and acquisitions of downstream companies are unlikely to become standard industry practice.

New Hope Dairy's 2021 investment in A Yogurt Cow followed a similar logic: beyond supporting ingredient sales, it aimed to turn the chain into a channel for directly understanding frontline consumer demand.

Note: investment figures and ownership percentages are historical as reported on November 8, 2023.