Summary of Key Points
As a century-old dairy company, Bright Dairy still possesses brand recognition and supply chain advantages. However, its reliance on the cold-chain milk market in regions like Shanghai has been challenged by competitors such as Yili, Mengniu, and local supermarket-owned brands. Revenue has been declining since its peak in 2021. The newly appointed young management team, consisting of Chairman Lu Junfei and General Manager Ben Min, is expected to bring about breakthroughs in marketing, digitalization, and efficiency. The immediate focus is on stabilizing the cold-chain milk business while resolving operational issues with the overseas asset New Lait and integrating the domestically acquired company Xiao Xiniu to create synergies, with the ultimate goal of returning to growth.
I. Bright Dairy's Current Situation: The "Midlife Anxiety" of a Century-Old Company
Bright Dairy is like a well-known brand that Shanghai residents have grown up with. It once dominated the cold-chain milk market, but now it faces competition from brands like Rili Xianyu, Yue Xianhui, and supermarket-owned fresh milk products. This shift reflects the erosion of its regional advantages: cold-chain milk requires specialized transportation and could only be sold locally, which gave Bright Dairy a competitive edge in Shanghai. However, other dairy companies have either established factories near Shanghai or improved their sterilization techniques to extend product shelf life, encroaching on its market share.
Financially, 2021 saw revenue peak at nearly 30 billion yuan, and since then, it has been on the decline. The decline in liquid milk sales is a major concern for the company.
II. What Can the New Management Team Bring?
The new management team consists of individuals born in the 1970s: Lu Junfei, who started from the factory level and has experience in procurement, marketing, and warm-temperature milk products, and Ben Min, an expert in digitalization, using big data to analyze consumer preferences and optimize the supply chain. The company hopes they can address two key issues. Lu Junfei is expected to innovate in marketing (for example, collaborating with Manner Coffee or hiring Wu Lei as a spokesperson), while Ben Min will improve efficiency through digital tools (e.g., faster inventory turnover and lower costs). In short, the company expects them to sell products more effectively and manage expenses more efficiently.
III. The Battle to Protect Core Business: Can Cold-Chain Milk Be Preserved?
Cold-chain milk is Bright Dairy's core business, but competition in Shanghai has intensified. For instance, in Hema supermarkets, Bright Dairy's brands occupy less space compared to Hema's own brands, and other dairy companies are increasing their presence. Consumers have also changed; while they may prefer Bright Dairy products, they are open to trying cheaper or more flavorful alternatives when discounts are available.
Experts suggest that Bright Dairy should focus on its local market by setting up fresh milk delivery points in communities or developing more tailored products (e.g., for those with lactose intolerance). Lu Junfei's marketing experience could be particularly valuable in this regard.
IV. The Impact of Acquired Assets: A Burden or a New Opportunity?
Bright Dairy has two significant investments to manage:
1. New Lait (overseas): This New Zealand-based dairy company faced operational difficulties, and Bright Dairy provided a loan of NZD 130 million, which was renewed after repayment. Although some assets have been sold to reduce costs, whether the investment will be profitable remains to be seen.
2. Xiao Xiniu (domestically): Bright Dairy acquired this Qinghai-based dairy company with annual revenue of 500 million yuan and a net profit of 23 million yuan in 2025. Xiao Xiniu has advantages in milk supply and distribution channels in the northwest. If integrated effectively, it could be a valuable asset; otherwise, it could become a financial burden.
Experts emphasize that acquired assets should generate profits and support the main business.
V. Lessons from Sanyuan Dairy's Success
Sanyuan Dairy, another similar company, also changed its management in 2025 and focused on its cold-chain milk business in Beijing, streamlining operations and reducing product lines while hiring Ge You as a spokesperson to tap into nostalgia. Although revenue decreased by 9.58% and net profit fell by 226 million yuan (mainly due to losses from overseas subsidiaries), the company still made a profit of 271 million yuan after adjusting for these factors, indicating that focusing on core business can be effective.
This suggests that Bright Dairy should prioritize its core market (Shanghai's cold-chain milk business) and resolve the issues with its overseas assets without letting side businesses drag down overall performance.
VI. What Lies Ahead for Bright Dairy?
The age of the new management team is not the key; what matters is whether they can transform marketing capabilities and digital efficiency into tangible growth. In the short term, the company needs to stabilize its operations in Shanghai and the cold-chain milk market, ensuring that New Lait and Xiao Xiniu do not become a drag on performance. In the long term, it should leverage its regional advantages to develop new products or business models (e.g., more specialized cold-chain milk products or community-based distribution channels) to regain consumer loyalty. After all, while brand heritage is important, consumers have more choices, and failure to adapt will lead to decline.
In summary, Bright Dairy's future depends on its ability to transform marketing and digital strategies into growth opportunities.