Jeffrey Minfang Lu, the vice chairman and former CEO of China Mengniu Dairy, has announced his resignation. Alongside this departure, he has also stepped down from his positions on the company’s strategy and development committee, as well as its sustainability committee.
According to a recent stock-exchange filing, Lu expressed a desire to prioritize personal commitments and focus on family matters. Lu served as CEO of Mengniu from 2016 until March of this year, when he was succeeded by company executive Gao Fei.
In the filing dated October 10, Mengniu further reported the appointment of Wang Xi as a non-executive director. Wang is familiar with Mengniu, having previously held similar roles for over two years until this past August. Additionally, he will sit on the company’s strategy and development committee. Wang’s background includes positions within COFCO Corporation, where he functions as deputy director of the group’s strategy department and general manager of the direct investment division.
Prior to joining COFCO, Wang gained valuable experience at China Development Bank Capital’s Direct Investment Division IV and in Deutsche Bank’s investment banking division in Hong Kong. As a reference, COFCO Corporation, through its subsidiaries, holds a significant stake in COFCO Dairy Holdings, which owns 82.16% of COFCO Dairy Investments. This entity has a combined direct and indirect interest of about 21.5% in Mengniu Dairy’s total issued share capital, while COFCO Corporation has an indirect interest of approximately 2.64%.
In its latest financial report, Mengniu reported a revenue increase of 6.5%, reaching 98.62 billion yuan ($13.96 billion). The company highlighted its expanded market share in China’s liquid milk sector; meanwhile, its chilled yogurt product line achieved growth that defied market trends. Notably, liquid milk sales constituted more than 82 billion yuan of Mengniu’s total revenue.
Conversely, revenue from milk formula products, which includes infant formula, fell by 1.3% to 3.81 billion yuan. Mengniu indicated that its Bellamy’s brand, acquired in 2019, experienced “strong growth in sales.” Operating profit grew by 13.8% to 6.17 billion yuan; however, net profit attributable to owners decreased by 9.3% to 4.81 billion yuan due to higher tax expenses and a decline in net finance income.
In the ever-evolving landscape of the food and beverage industry, Mengniu’s recent transitions reflect key shifts that align with broader trends. As the food and drink business adapts to changing consumer preferences, maintaining a competitive edge requires agility and informed strategic decisions.
To learn more about the food and drink consumer trends, consider exploring additional resources that can provide deeper insights into industry dynamics.