Asia Food & Beverages Report (May/June 2021 issue)

Investment News
KKR invests in direct-to-consumer
dairy firm
Global investment firm KKR has invested
in Adopt A Cow, a direct-to-consumer dairy
company in China that integrates digital
solutions into its core operations.
Adopt A Cow’s new funding round was co-led
by KKR and DCP Capital.
Established in 2016 by Xu Xiaobo, Adopt A
Cow primarily produces and sells milk, yogurt,
cheese sticks and milk power products in
China. It has a vertically-integrated business
model covering alfalfa growing, dairy farming,
milk processing, and technology-enabled
marketing. Over the past 5 years, Adopt A
Cow has become one of the fastest growing
direct-to-consumer brands in China, and has
accumulated more than 10 million customers.
Adopt A Cow will use the new funding to
accelerate the construction of modernised dairy
farms and smart production factories, bring in
Australian dairy cows and further integrate the
company’s digital operation platform to boost
efficiency and product quality.
KKR will support the company’s business
growth by combining its vast experience in
dairy investment as well as its global industry
knowledge and network of resources.
Karen Zhang, who leads KKR’s technology
strategy in China said, “China’s economic
growth is benefitting from the expansive and
rapid adoption of digital technologies that are
bringing convenience into people everyday
lives. This is creating attractive opportunities
to support the innovative Chinese companies,
like Adopt A Cow, that are transforming their
industries for the digital economy.”
markets.” The plant will also be used to produce Beyond Pork, the company’s first innovation
created specifically for the Chinese market.
It first entered mainland China in April 2020 via partnership with Starbucks China. Beyond Meat
is currently working with other partners like KFC, Pizza Hut, online grocer Hema and supermarket
Metro China amongst others to serve plant-based meat products to mainland Chinese consumers.
In the US, its home market, Beyond Meat has recently announced several major product
expansions which include Beyond Meatballs, Beyond Breakfast Sausage Links, Cookout Classic
and Beyond Sausage. Beyond Meat has also expanded its distribution strength to approximately
28,000 retail outlets across the country.
Beyond Meat aims to expand its offering to global consumers looking for delicious yet nutritious
and sustainable plant-based meat without the use of GMOs or bioengineered ingredients.
Meanwhile, Beyond Meat also aims to open its 1 st self-owned manufacturing facility in Europe in
2021.
OmniPork producer to construct plant in China
HK-based Green Monday Group is planning to open its 2 nd manufacturing plant in China.
The factory will however be its 1 st plant in China to manufacture its OmniPork range of meat
products meant for domestic consumption.
The new site was identified to be in Guangdong and will commence production in the 3 rd quarter
of 2021.
Green Monday launched OmniPork in 2018 and it now sells its products in more than 10 markets
which include Hong Kong, China, Japan, Singapore and Australia. In Thailand, the company has
its current factory.
Green Monday is planning a 3 rd factory in Taiwan however this is not finalised yet.
It is also hoping to penetrate new markets like South Korea, Indonesia and the US in 2021.
Industrial Hemp JV in China
CANNABIS (CBD)
China-based Yunnan Baiyao Group has just
established a joint venture (JV) with Hong Kong
investment holding firm Ban Loong Holdings
to produce industrial hemp, a derivative of the
cannabis plant that can be utilised in making
a variety of products like rope, textiles, paper,
bioplastics, biofuel and health foods.
Ban Loong will take a 51% stake and play a
leading role in the JV, while Kunming-based
Yunnan Baiyao will hold the remaining equity
and play a supporting role, according to the
memorandum of understanding signed by
the 2 parties on 23 April. No further details on
investment were released.
Yunnan Baiyao, whose primary product is the
traditional Chinese medicine of the same name
which is used as a pain reliever and to stop
bleeding, will develop end products containing
cannabinoid and industrial hemp ingredients,
provide marketing support and do its best to
obtain all the necessary licenses and permits.
Yunnan Baiyao already holds a 30% stake in
Ban Loong, which mainly provides short-term
private and corporate loans and is also engaged
in the cooking oil, sugar and cosmetics trade.
PLANT-BASED MEAT
Beyond Meat officially opens its 1 st
plant outside US in China
Beyond Meat has unveiled its 1 st plant-based
meat factory outside the US to accelerate
localised production while making its products
cheaper and more affordable to consumers in
this region.
Beyond Meat has commenced operations in
April 2021 at a plant in the Jiaxing Economic
and Technological Development Zone near
Shanghai. Beyond Meat plant-based meat
products include pork, beef and chicken.
Beyond Meat Founder and CEO Ethan Brown
said, “The opening of our dedicated plantbased
meat facility in China marks a significant
milestone in Beyond Meat ability to effectively
compete in one of the world’s largest meat
13 Asia Food & Beverages