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
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