CCM: Classy Kiss to Launch New Yoghurt in 2016 04-29-2016

In 2016, new Classy Kiss yoghurt products are expected as part of increasing competition in the premium yoghurt segment.


Classy Kiss is a premium fresh yoghurt brand produced by Green’s Bioengineering (Shenzhen) Co., Ltd., a privately owned dairy company established in 1999. The company has formed a complete industry chain, from R&D, production, sales to cold-chain logistics. It produces only yoghurt at present.


In the past the Classy Kiss brand was mainly sold in South China (= Guangdong and Hainan provinces, Guangxi Zhuang Autonomous Region, Hong Kong and Macao). During 2015 it was launched into the surrounding provinces, so its distribution now extends to the provinces of Hunan and Fujian. “In 2016, we will launch new products, to grow our business”, said Wang Weijia, Brand Manager of Classy Kiss at the open day held at its Shenzhen plant in late December, 2015.

 

16-years in the premium yoghurt segment

Mintel estimates that during 2009-2014 China's total yoghurt sales (UHT and fresh) grew by 111% in volume terms. Certainly the category's expansion in China has attracted many new brands, mainly targeting the premium segment:

 

     Late 2013: Japan's Meiji launched its yoghurt locally

    June 2015: General Mills (re)launched its Yoplait brand

    July 2015: Guangdong Yantang Dairy Co., Ltd., a leading fresh milk producer in Guangdong, introduced a cereal yoghurt



 

Facing increasing competitors, Wang Weijia takes a "rising tide" approach: “Brand recognition is a long way to go. Classy Kiss is not afraid of competition. The flow of new brands into the market will benefit the development of the premium yoghurt segment”. Classy Kiss (in 100 g) sells at about RMB1-2 higher than Bio (Mengniu), Changyou (Bright Dairy and Food Co., Ltd. – Bright Dairy) or other successful yoghurt brands. It is notable that, unlike its competitors, the company seldom discounts its brand.


This confidence comes from its market position. Classy Kiss has been a pioneer, having been devoted to the premium segment at its launch 16 years ago. According to statistics from Nielsen, over the period October 2014 to September 2015, sales of fresh yoghurt hit USD271.6 million (RMB1.8 billion) in Guangdong: Bright Dairy led with a market share of 28.6%, closely followed by Classy Kiss at 26.6%.


However, Bright Dairy focuses on the value and mid-market markets, avoiding any head-on competition with Classy Kiss, which targets only the premium segment with 3 varieties: stirred (3 flavours), drinking (5 flavours) and strained yoghurts (1 type, in original and strawberry flavours). Over the years the company has built up distribution across food service, supermarkets and stores, convenience stores and bakeries. “In the last 5 years, we have maintained a high-speed average growth rate, much higher than the industry level”, said Wang Weijia.

 

Focus on quality

The company takes a "less is more" approach. Confronted with new brands and new flavours of yoghurt, and new concepts, such as “cereal”, “100% raw milk”, “zero additives” and “added prebiotics”, it has resisted launching new Classy Kiss products without a strong business case: “Every new product we launch is strategically positioned for quality”.


For Classy Kiss, “quality” is defined by several criteria:

Raw milk: supplied exclusively by large-scale, modern-style farms (> 1,000 cows)

 

Production process: 5 rich prebiotic strains are selected to improve taste and nutritional value (Lactobacillus Bulgaricus, Streptococcus thermophilus,  Bifidobacterium Lactis, Lactobacillus acidophilus and Lactobacillus paracasei), chosen based on consumer demand – the company advertises that these are incorporated in significant quantities

 

Production procedures: the company places emphasis on its systems for strict monitoring, both HACCP (=Hazard Analysis Critical Control Point) and ISO9001

 

Cold-chain link and transportation: this area is strictly controlled, and the company claims its cold chain system is able to cover both Eastern China and Central China. In transit, every truck carries a temperature controlling black box and a GPS, to allow whole process monitoring, recording the product storage temperature, the shipment progress etc.


* This article comes from Dairy Products China News 1601, CCM



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


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Tag: yoghurt ,Dairy


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