Finnish dairy company Valio has unveiled a new head office in China, located in Shanghai.
The newly established head office will focus on serving the Chinese market.
Annikka Hurme, CEO of Valio Ltd., said that there is good momentum in the Chinese economy at present and that its new head office can maximise Valio’s performance in China.
Market With Potential
According to Euromonitor International, China’s dairy market size was 376 billion RMB (€50 billion) in 2017. The market is expected to reach 484 billion RMB (€64 billion) by 2022.
Zhou Hai Ying, deputy head of the People’s Government of Shanghai’s Jing’an District, said, "There is an old Chinese saying, ‘Eating is even more important than the Emperor'. With the increases in consumption, I am confident Valio products will become ever more popular among Chinese consumers.
"We hope that Valio, a globally renowned food and dairy company, can continue to offer fresh and pure products of high quality, achieved through strong control of the quality chain from pasture to table, and continue to provide delicious and healthy food to consumers, as well as to boast better and faster development in the Chinese market."
Long-Standing History
The Finnish dairy company first entered the Chinese market in 1986 when it collaborated with the ministry of agriculture to help develop the country’s dairy industry by providing production knowledge training in Beijing.
Valio Demi demineralised whey powders entered the Chinese market in 1990, and the product was widely used to produce infant formulas as well as chocolates and ice creams. It also opened flagship stores on e-commerce platforms, such as JD.com and Tmall.com in 2017.
Fresh, Safe & Traceable
Xiao Lu, managing director of Valio China, said Valio’s ability to win the trust of the Chinese market in a relatively short period of time is due to its sustainable business model that ensures that products are fresh, safe and traceable.
He said, "Right now, China is undergoing a new round of consumption upgrading, and natural, healthy and environmentally sustainable foods are gaining popularity among consumers.
"Valio will continue enriching its product categories in China to meet the various needs of Chinese consumers. For example, Valio’s unsalted butter, made using the pure, high-quality milk from Finland through a traditional fermenting process, was awarded 'Best of Class' at the World Championship Cheese Contest in 2018. It will undoubtedly be a pleasing addition for food enthusiasts in China."
The Finnish retail group recently announced that it saw a sales increase of 4.3% to €1.7 billion in 2017 despite challenging markets.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
