Cathay Capital and Savencia Fromage & Dairy have partnered to strengthen Baijifu’s market presence in China, capitalising on the 60th anniversary of China-France diplomatic relations. This collaboration aims to boost product innovation, adapt to local consumer preferences, and expand sales channels in China’s growing cheese market.
Cathay Capital, a prominent global investment platform, has announced a strategic partnership with Savencia Fromage & Dairy, a renowned French dairy and food product manufacturer. This alliance, marked by an exclusive strategic investment in Savencia’s Chinese brand, Baijifu, is poised to significantly impact the dairy market in China. Here’s a detailed look at what this partnership brings to the table.
Strengthening Market Presence
The strategic partnership between Cathay Capital and Savencia aims to bolster Baijifu’s market presence in China. By investing in Baijifu, which offers a diverse range of over 50 cheese and dairy products globally, Cathay Capital is reinforcing its commitment to expanding the brand’s footprint in the Chinese market. This move is expected to enhance Baijifu’s visibility and market share in a rapidly evolving dairy sector.
Addressing the Growing Cheese Demand
China’s cheese market, though relatively small compared to Western markets, is on the cusp of significant growth. With the average Chinese consumer’s annual cheese intake at about 180 grams—compared to 27 kilograms in France and 4 kilograms in Japan—there is substantial potential for expansion. Oliver Delamea, CEO of Savencia Fromage & Dairy, anticipates that cheese consumption in China will rise as consumers increasingly view it as a nutritious snack. The partnership aims to capitalize on this growing demand by offering innovative and healthy dairy products tailored to local preferences.
Enhancing Product Innovation and Market Adaptation
Cathay Capital’s investment will facilitate Baijifu’s adaptation to the evolving needs of the Chinese market. Leveraging its Sino-European industrial advantages, Cathay Capital will support Baijifu in product innovation, brand development, and sales channel expansion. This strategic support will enable Baijifu to better meet local consumer preferences and enhance its competitive edge in the Chinese dairy industry.
Expanding Sales Channels and Supply Chain Management
A key component of the partnership is the focus on expanding sales channels and optimising supply chain management. Cathay Capital’s involvement is expected to streamline Baijifu’s operations, improve distribution efficiency, and foster stronger connections with local retailers and distributors. This operational support will be crucial for scaling Baijifu’s presence and achieving sustainable growth in China.
Projected Market Growth
The Chinese cheese market is projected to experience robust growth, with its value expected to surge from $1.06 billion in 2020 to $1.96 billion by 2025—a nearly 85 percent increase. This growth trajectory underscores the significant opportunities for Baijifu and its strategic partners to capture a larger share of the market. The partnership aims to position Baijifu as a leading player in this expanding market.
Long-Term Confidence in the Chinese Market
The 60th anniversary of diplomatic relations between China and France provides a timely backdrop for this strategic investment. Cathay Capital’s founder and chairman, Cai Mingpo, emphasised the company’s long-term confidence in the Chinese market and its commitment to exploring new opportunities. This strategic partnership is seen as a testament to the trust and support between the two companies, as well as a belief in the future potential of China’s dairy sector.
The strategic partnership between Cathay Capital and Savencia Fromage & Dairy represents a significant step towards expanding Baijifu’s presence in the Chinese market. By focusing on product innovation, market adaptation, and operational efficiency, this collaboration aims to leverage the growing demand for cheese in China and establish Baijifu as a key player in the dairy industry. With long-term confidence in the market and a commitment to exploring new opportunities, both companies are poised for success in this burgeoning sector.
