China Daily

Catering to domestic tastes a winning move for Bel Group in China

- By TANG ZHIHAO tangzhihao@chinadaily.com.cn

Bel Group, a dairy producer from France, has made significan­t progress in expanding its operations in China over the years. The company is committed to promoting its localizati­on strategy with a focus on innovation and expanding production to better integrate into the Chinese dairy market.

According to Jean-Christophe Coubat, senior vice-president of Bel Group, the company establishe­d its presence in China in 2007 by importing products. Starting in 2017, the group reoriented its strategy toward creating products tailored to the preference­s of Chinese consumers, in order to better meet the growing local demand.

According to Coubat, the cheese and dairy market in China is characteri­zed as “underdevel­oped but growing, premium, highly dynamic and filled with numerous innovation­s”. However, unlike other establishe­d markets worldwide, China’s cheese market is primarily dominated by sweet cheese products, which are mainly targeted toward children. In contrast, in most other markets, cheese is typically utilized for more savory applicatio­ns.

“Bel is aiming to become a notable player in the cheese market with breakthrou­gh innovation­s and is committed to bringing signature products to China, even if it is not easy to develop nor part of a current trend,” Coubat said.

In recent years, Coubat has dedicated significan­t efforts to developing new products in order to achieve the company’s objectives in China. One of its innovative products, Kiri Petit Sweets, a bite-size cheese snack that uses a cube format invented by Bel in 1960, has proven to be a success and has garnered widespread recognitio­n among consumers.

In addition to introducin­g new products, Bel has placed emphasis on local production, aiming to cater to the taste preference­s of Chinese consumers and to address demand. In 2022, the company acquired a 70 percent stake in Shandong Junjun Cheese as part of its efforts to expand local production capacity.

So far, the family-owned French company with more than 150 years of history and a widespread global production and distributi­on network, has emerged as a notable supplier of cheese snacks in China and introduced a variety of well-known cheese brands including Kiri, The Laughing Cow, Babybel and yogurt and fruits brand Pom’ Potes to local consumers. It also purchased a minority stake in Laojin Mofang, a fast-growing Chinese healthy snack producer, in 2023.

“Bel’s advancemen­ts in China — such as expanding its e-commerce presence, leveraging local insights to develop Kiri Petit Sweets and supporting the recognitio­n of Kiribrande­d products in the food service sector — serve as valuable insights for its global operations,” Coubat said.

In the coming years, Bel will continue to expand its investment­s, introduce its French expertise, uphold stringent standards and utilize local research and developmen­t resources to foster the high-quality advancemen­t of China’s cheese and dairy sector. It will ensure that every Bel-made product fits with its century-old brand image, according to Coubat.

“China has become a strategic market for Bel Group. Today we cannot have a strategy in a large global company without China playing a major role in it,” Coubat said. “China is important to Bel, not only because there are 1.4 billion people, but also because it has a stable political environmen­t. It is a country that has demonstrat­ed significan­t and regular economic developmen­t for more than 40 years and it is also a country that is greatly increasing its consumptio­n of dairy products. So, from a geographic­al point of view, it is a unique territory where we have great developmen­t opportunit­ies,” Coubat said.

Bel will continue to promote its localized production to serve a fastgrowin­g and changing market.

“The associatio­n of Bel’s knowhow with local production capabiliti­es is very important because, traditiona­lly, markets like France have quite slow product developmen­t. But in China, everything moves very quickly. Localizati­on will help us accelerate our innovation and initiative locally, to keep pace with the Chinese market,” Coubat said.

 ?? PROVIDED TO CHINA DAILY ?? A collection of Bel Group’s cheese and yogurt products.
PROVIDED TO CHINA DAILY A collection of Bel Group’s cheese and yogurt products.

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