The victory or defeat of very few military battles on the battlefield is determined by advanced weapons, but in the commercial battlefield, when the core technology is in the hands of the opponent, it is necessary to cut the flesh and blood. If you fall behind, you will be beaten. This has been the case since ancient times. In China's business field, it is not only chips that are subject to people everywhere, but also dairy packaging and many other industries.
In China, the dairy industry is basically the two-man transfer of the two giants of Mengniu and Yili, but did you know that the rapid rise of Yili and Mengniu Grassland is mainly due to Tetra Pak, which has mastered the core technology of packaging. High-quality packaging can keep milk fresh. It is with these core technologies that Tetra Pak controls more than 70% of the packaging market in China's dairy industry.
Tetra Pak entered China as early as 1972 and put the first filling machine in Guangzhou in 1979. With the rapid development of China's economy and the continuous improvement of the people's living standards, Tetra Pak's investment in China has received substantial returns. As of the beginning of 2017, Tetra Pak had a total of 32 market companies, 36 packaging material and cap production plants, and 5 equipment assembly plants worldwide. The company has more than 24,000 employees, net sales revenue in 2016 was approximately 11.4 billion euros, and its products are sold in more than 170 countries and regions. In 2016, Tetra Pak produced nearly 188 billion packages and provided approximately 77.8 billion liters of liquid food products to consumers worldwide. Among them, more than 1/3 of the income "contribution" comes from China.
What really made Tetra Pak flourish in China is undoubtedly the success in boosting the rise of Yili and Mengniu. The two companies, Yili ($9.9 billion) and Mengniu ($8.8 billion) ranked ninth and tenth respectively in the "Top 20 Global Dairy Companies" in 2018, are undoubtedly global dairy giants. But in the rise of Yili and Mengniu, Tetra Pak is undoubtedly the driving force behind.
Today, out of every 10 cans of liquid milk and soft drink paper packaging that Chinese consumers drink, at least 8 cans are produced by the production lines and packaging materials provided by Tetra Pak. In fact, Tetra Pak has achieved monopoly in the Chinese milk packaging market. status.
The story of Tetra Pak and the prairie duo is a model of win-win situation. While helping Yili and Mengniu to become dairy giants, Tetra Pak has also made huge profits. It is said that for each carton of milk, dairy companies earn 1/4 of their profits, while Tetra Pak earns 3/4. Therefore, people in the industry joked: Mengniu and Yili both work for Tetra Pak.
In 2018, Yili achieved a net profit of 6.44 billion yuan and Mengniu Dairy's net profit was 3.04 billion yuan. Based on the above profit ratio, Tetra Pak made more than 10 billion yuan in profit from Yili. Therefore, the media once described Tetra Pak as a “dairy industry”. The arms dealer behind the battlefield".
Of course, Tetra Pak has today's dominance, which is inseparable from its strong packaging technology. It is understood that Tetra Pak has more than 5,000 technical patents, and 2,800 are being developed and applied for. Tetra Pak’s bad package rate can be controlled within one ten-thousandth, while the average level of domestic enterprises is two to three ten-thousandths. In addition, the difference between Tetra Pak and other packaging materials is also reflected in the storage time of UHT milk. The gap between the two will reach 20%-30%. In other words, if the shelf life of Tetra Pak is half a year, other packaging materials may only have four to five months.
Tetra Pak’s filling equipment is also very expensive, and the fully automatic Tetra Pak filling machine is the most expensive of the above equipment, with a unit price of 29 million yuan.
In 2016, the State Administration for Industry and Commerce determined that Tetra Pak had abused its dominant market position from 2009 to 2013 and violated China's anti-monopoly law and imposed a fine of approximately RMB 668 million. Tetra Pak did not appeal and accepted the fine calmly.
On the morning of July 5, 2017, Tetra Pak China issued a statement stating that the Tetra Pak Foshan plant has decided to stop production on July 28, and its existing production tasks will be allocated to three other Tetra Pak packages in mainland China. Wood factory.
In addition, Tetra Pak China is also facing fierce competition in the production of liquid aseptic packaging materials by foreign companies such as Germany's Kangmei and Stora Enso, and national companies such as Sun, Greatview, and Jielong. However, with its two most important customers, Yili and Mengniu, which are firmly bound in its hands, Tetra Pak has still been unable to shake its dominance in a short period of time.
