Bright Dairy & Food Co., Ltd. (Bright Dairy) has recently completed the acquisition of the remaining 40% stake in Qinghai-based dairy company Xiaoxiniu, achieving full ownership. Against the backdrop of three consecutive years of declining performance, industry insiders suggest this move reflects Bright Dairy’s "anxiety" about national expansion and product diversification.
Internal employees revealed that Bright Dairy’s market performance has been underwhelming, particularly in the southwestern region, where operations have scaled back. The company is now focusing more on Shanghai and East China while gradually reducing its presence in other national markets to "minimize profit losses."
Notably, Bright Dairy’s home market of Shanghai is "losing ground," with sales in the first three quarters dropping by 4% year-on-year. Employees admitted, "The pressure is indeed mounting."
From 2022 to 2024, Bright Dairy’s revenue declined for three straight years, falling by 3.39%, 6.13%, and 8.33%, respectively. Meanwhile, Chairman Huang Liming and other executives saw their salaries double from RMB 860,000 in 2022 to RMB 1.72 million in 2024.
**Can Xiaoxiniu Acquisition Turn the Tide with Yogurt?** Bright Dairy recently spent RMB 500 million to acquire the remaining 40% stake in Xiaoxiniu, gaining full control. Xiaoxiniu, known for its Qinghai-Tibetan Plateau dairy products, specializes in yogurt—a segment where Bright Dairy has struggled against rivals like Yili’s Amoxicillin and Mengniu’s Pure Joy.
Despite having flagship yogurt products like Mosilián, Bright Dairy lags behind in market share. Random checks in Beijing supermarkets showed limited shelf space for Bright Dairy’s yogurt, with staff noting, "Mengniu and Yili sell better here." Online sales also pale in comparison, with Bright Dairy’s yogurt products selling only 200–1,000 units versus competitors’ thousands.
**Declines at Home and Abroad** Bright Dairy’s financials reflect these challenges. In the first three quarters of 2025, revenue fell 0.99% to RMB 18.23 billion, while net profit plunged 25.05% to RMB 87 million.
Its core liquid milk segment saw an 8.57% revenue drop, with Shanghai sales down 4% and other regional markets declining 3.6%. In the southwest, supermarket staff reported low product availability and weak brand recognition.
An employee confirmed, "The southwestern market has long been weak. We’ve scaled back to protect profits." Competition in Beijing’s ambient milk segment is fierce, with rivals like Mengniu, Yili, and Junlebao dominating.
Dairy expert Song Liang noted, "Regional players like Bright Dairy face high expansion costs and price wars, forcing them to prioritize profitability over growth."
**Strategic Shift and Rising Executive Pay** Bright Dairy is now concentrating on Shanghai and East China while scaling back nationally. However, competition is intensifying, with national giants Yili and Mengniu encroaching on its traditional markets, including the premium fresh milk segment it once dominated.
Despite three years of declining revenue and asset sales (including offloading New Zealand subsidiary Synlait’s North Island assets to Abbott for $170 million), executive pay has surged. Chairman Huang Liming’s salary doubled from 2022 to 2024, with total executive compensation rising from RMB 8.98 million to RMB 10.09 million.
Bright Dairy has experimented with collaborations, such as Manner Coffee’s limited-edition latte and White Rabbit crispy ice cream, but these efforts have yet to reverse its fortunes.
Amid a sluggish consumer environment and heightened price sensitivity, the company faces an uphill battle to regain its footing.
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