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China’s ‘Dairy Godfather’ Niu Gensheng Builds a US$410 Million Ice Cream Empire

by Alice

Niu Gensheng, widely known as China’s “Dairy Godfather,” has transformed his humble beginnings into a thriving US$410 million ice cream empire. His journey from an abandoned infant to the founder of Mengniu Dairy and creator of the popular Aice brand is a testament to resilience, vision, and an unwavering commitment to making quality products accessible to all.

Born into poverty in Inner Mongolia, a vast northern region of China, Niu faced hardship from the very beginning. Shortly after his birth, his parents, unable to care for him, sold him to a cattle farmer for just 50 yuan (US$7). Despite his challenging start, Niu’s adoptive father raised him until a political dispute led to the loss of their assets, forcing Niu to work alongside his father, sweeping streets and doing hard labor. Tragedy struck when both of his adoptive parents passed away.

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In 1983, Niu began his career as a bottle washer at a local dairy factory, which later became Yili, one of China’s leading dairy companies. Over the next decade, he worked his way up to workshop director, learning the intricacies of dairy production. By 1992, he was promoted to Vice-President of Production and Operations at Yili, earning a salary of over one million yuan (US$140,000) annually. However, despite his success, Niu faced intense competition and rumors within the company, leading to his resignation.

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Refusing to give up on his dreams, Niu launched Mengniu Dairy in 1999 with just 10 million yuan (US$1.4 million) in capital, setting out to build China’s largest dairy company. At that time, his former employer Yili had assets worth 1.2 billion yuan (US$164 million). Niu’s innovative marketing strategy focused on rural areas, using local dialects in advertisements and offering low prices to attract customers.

By 2004, Mengniu’s revenue soared to 7.2 billion yuan (US$985 million), and in 2005, the company surpassed Yili to become China’s leading dairy brand. Niu attributed his success to “betraying common sense” in business.

Building on his success in the dairy industry, Niu turned his attention to Southeast Asia. In 2015, he launched Aice, an ice cream brand designed for Indonesia’s lower-tier market. Using a strategy of small profits and high volume, Aice offered affordable ice cream, with prices ranging from 900 to 1,500 IDR (6 to 10 US cents). The brand also catered to local tastes, introducing flavors like durian and coconut milk coffee ice cream, while supporting small vendors with free freezers and electricity subsidies.

Today, Aice operates in over 1,200 districts across Indonesia, with annual revenue exceeding three billion yuan (US$410 million), making it the top ice cream brand in Southeast Asia.

Niu’s business philosophy focuses on making products accessible to all, stating, “The true consumption revolution is not about making the rich more extravagant, but about allowing the poor to live with dignity.”

Beyond his business achievements, Niu is also dedicated to philanthropy, funding children with serious illnesses in Inner Mongolia and helping build schools across China. His inspiring journey has earned him admiration, with many on mainland social media praising his relentless commitment to consumer equality and a deep understanding of human needs. One observer remarked, “From a dairy farm in Inner Mongolia to an ice cream factory in Jakarta, Niu has spent 40 years proving that a true business legend is driven by a relentless commitment to consumer equality and a deep understanding of human needs.”

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