Westland buyer on path to No 1

Yili, the Chinese conglomerate that has controversially bought the historic Westland dairy co-operative, is threatening to topple French giant Danone as the world’s most valuable dairy brand, a new report shows.

Asia’s most valuable dairy brand for four years running, Yili is No 2 in the world top 10 dairy brand value rankings and has “relentlessly” committed to its global expansion programme, said the Brand Finance Food & Drink 2019 report.

Brand claims to have the world’s biggest brand value database.

It valued the dairy brand of part-state-owned Yili at US$7.7 billion ($11.3b), 24 per cent up on its value last year.

The dairy brand of No 1 spot holder Danone was valued at US$8.1b, a loss of 10.4 per cent on its value last year.

Yili has bought Westland, a farmer-owned co-operative, for $588 million in a distressed sale. Yili takes over the West Coast’s biggest employer on August 1.

The report also ranked Yili third in world food brand value rankings, with Danone second. Nestle topped the list.

The report said the Yili dairy brand showed no signs of slowing down its spread despite losing out to French dairy manufacturer Lactalis to acquire Danone’s subsidiary Stonyfield.

Brand said the acquisitions were key steps in the Yili brand’s ambition of building a global network beyond its domestic market, targeting two billion consumers at home and abroad by next year.

No New Zealand dairy brand featured in the top 10 rankings.

Brand said Yili also retained the highest brand potential score in the dairy ranking, “highlighting the vast future growth opportunities for the brand”.

Another Chinese dairy brand, Mengniu, also recorded a big increase in dairy brand value — up 45 per cent to US$5b, which gave it third place in the top 10.

Brand said China was on track to overtake the US as the world’s largest dairy market.