Click to read the original article for details "The health secret of the longevity village, Morsilian." This slogan is one of the most classic in Chinese advertising history, succinctly conveying the product's long history and health attributes. In 2009, Bright Dairy created the "ambient yogurt" category in China with this Morsilian yogurt. Over the past 11 years, China's ambient yogurt market has grown significantly. Data shows that from 2012 to 2018, the market size surged from 1.5 billion RMB to 31.1 billion RMB, an increase of over 20 times, with an average annual growth rate of 66%[1]. Recently, Bright Dairy launched a new ambient yogurt sub-brand, Yanjian, and its first product, "Yanjian No-Additive Yogurt," which is 0 sucrose and 0 food additives. This is Bright's first new ambient yogurt brand in 11 years since launching Morsilian in 2009. Yanjian No-Additive Yogurt Image source: Bright Dairy So, why is Bright launching the Yanjian new product now? What changes have occurred in the ambient yogurt category since its inception, and what changes in the food industry do these new launches represent? FBIF brings you an in-depth report. -01-

Bright Dairy Launches New Product

This Time, It's 0 Sucrose and 0 Additive Ambient Yogurt

The new "Yanjian No-Additive Yogurt" features an ultra-simple formula, containing only raw milk, crystalline fructose, whey protein powder, and cultures, with no added sucrose or food additives such as colors, flavors, or preservatives. The product uses crystalline fructose instead of white sugar, a natural ingredient extracted from honey and fruits. Studies show that fructose does not provide energy to oral microorganisms, and its adverse effects on teeth are far less than sucrose, making it healthier[2]. Additionally, the product comes in a small 135g/box package, compared to the traditional Morsilian standard 200g pack. Combined with the fact that ambient yogurt does not require refrigeration, this new product can be easily carried in a handbag, suitable for more usage scenarios. Yanjian No-Additive Yogurt adopts a small package design Image source: Bright Dairy Taking this opportunity, we also asked Bright Dairy a question that has puzzled us: "0 sucrose" as the main selling point of this new product is already common in chilled yogurt. For example, Jane's 0 sucrose chilled yogurt has been popular in recent years, and Bright also has its own 0 sucrose chilled yogurt brand, "Rushi." But why are "0 sucrose and 0 additive" products still rare in ambient yogurt? Bright Dairy Research Institute revealed to us that this is mainly due to process considerations; with current technology and processes, achieving "zero additives" in ambient yogurt is very difficult. At the same time, if sucrose is not added, the taste of ambient yogurt tends to be too sour, which does not meet the taste needs of most Chinese consumers. The "Yanjian No-Additive Yogurt" is the latest formula developed by the Bright Dairy Research Institute. It uses crystalline fructose, a healthier natural sugar substitute, instead of sucrose, and integrates technologies such as ultra-high temperature instantaneous sterilization, Tetra Pak aseptic filling equipment, and 7-layer composite material packaging to solve the preservation problem of ambient yogurt without additives, giving the product a shelf life of up to 6 months. Yanjian No-Additive Yogurt Image source: Bright Dairy Bright also revealed that this new product uses a 135g/box small package design for easier portability. In early next year, Bright will launch 0-additive ambient yogurt in the same package size as traditional ambient yogurt, as well as more flavors of 0-additive ambient yogurt, providing consumers with more choices. In 2009, Bright launched China's first ambient yogurt, Morsilian, which to some extent changed consumers' perception of yogurt. Eleven years later, Morsilian remains one of the leading ambient yogurt brands in China. But Bright also hopes to continue innovating on the existing foundation to meet more specific consumer needs. This time, they developed a 0-additive ambient yogurt for health-conscious consumers, marking a new attempt. -02-

Major Trends in the Food and Beverage Industry

Bring Opportunities for Breaking the Homogenization of Ambient Yogurt

In recent years, "0 sucrose" is not only a major trend in the yogurt sector but also one of the hottest trends across the entire food and beverage industry. Besides the well-known 0-sucrose beverage brand Genki Forest, other food categories also show a sugar-reduction or sugar-free trend. In recent years, innovative brands such as Kemicool (0-sucrose ice cream), Qingshishou (0-sucrose snacks), and Daily Dark Chocolate (0-sucrose chocolate) have emerged. Almost every food and beverage category can be reinvented with "0 sucrose." This wave is "blossoming everywhere" in the food and beverage industry, and what's even more surprising is that "0 sucrose" may become a key to unlocking the "innovation dilemma" in the industry, providing more possibilities for brands to solve the "homogenization" problem. Erythritol used by Genki Forest and aspartame used by Coke Zero are two well-known sugar-reduction ingredients in the industry, but there are many other sugar substitutes that can replace sucrose. For example, the signature protein bar of health food brand ffit8 uses isomaltooligosaccharide syrup as the base texture and partial main source. This ingredient does not participate in sugar metabolism, does not cause blood sugar fluctuations, and has considerable viscosity, which can "stick" various components together to maintain the structural stability of the protein bar. ffit8 protein bar Image source: ffit8 Kemicool, a sugar-free ice cream brand, uses maltitol syrup as part of the sweetener source. This sucrose substitute has only 5% of the caloric value of sucrose, making ice cream no longer an "enemy of the figure." Kemicool Extreme Series Ice Cream Image source: Kemicool Liangpin Shop's representative sub-brand "Liangpin Feiyang" adds L-arabinose to its meal replacement shakes. This new sugar substitute not only has a sweet taste but also inhibits 70-80% of sucrose absorption by the human body. L-arabinose is also a health food approved by regulatory authorities with "auxiliary blood sugar lowering" and "weight loss" functions. Liangpin Shop meal replacement shake Image source: Liangpin Shop These different sucrose substitutes each have their own flavors and characteristics. Based on these ingredients, brands can create nearly endless variations in food and beverages. Bright's new Yanjian product follows this approach. Bright revealed to us that the ambient yogurt category has been troubled by product homogenization in recent years. The ambient yogurt process is not complicated. After seeing the rapid growth of ambient yogurt brands like Morsilian, a large number of dairy companies entered the market. According to incomplete statistics, there are at least 40-50 companies producing ambient yogurt in China[3]. Moreover, dairy is a category with strong local characteristics due to the radius of production areas. Almost every place has "local dairy companies" that have accompanied local people growing up. Now these local dairy companies, such as Kedi in Henan, Royal in Guangxi, Western Region Spring in Xinjiang, and Shenghu in Qinghai, have successively launched ambient yogurt products. These brands have strong appeal among local consumers and are strong competitors for national dairy companies like Bright. With numerous competitors and severe product homogenization, ambient yogurt needs an "innovative breakthrough." This time, the technological innovation of Bright Dairy Research Institute brings the concept of 0 sucrose and 0 additives into ambient yogurt, redefining the ambient yogurt market. -03-

Bright, the "Low-Key Dairy Giant"

What Is It Planning?

As one of China's dairy giants, Bright has never been as "high-profile" as Yili and Mengniu. However, digging into Bright's "brand treasure trove," we find that in addition to Morsilian and Rushi mentioned earlier, brands commonly seen in supermarkets and convenience stores such as Jianneng, Changyou, and Bellamy's all belong to Bright Dairy. Bright has been quietly deploying a multi-brand strategy around us. At the same time, if you recall the TV ads of the top three dairy companies, can you identify the differences in their brand positioning? Yili's brand proposition is "Nourish Life Vitality," emphasizing change in life. Mengniu's brand concept is "Nourish Your Strength," emphasizing nutrition for the body. Bright, on the other hand, is "Joy in Freshness," putting the "freshness" of dairy products first. The four characters "乐在新鲜" are also part of Bright's brand logo. Bright: Joy in Freshness Image source: Bright Dairy These characteristics make us realize that Bright may be an underestimated company. Behind it, there are highlights we usually don't notice. We have summarized the following three points for you: 1. Build a Multi-Brand Strategy Based on Consumer Needs For most food and beverage companies, the "brand name" is their most important brand asset. When launching a new product, imprinting an established brand with a good reputation can give the new product "inherent brilliance." But Bright has chosen to build different sub-brands based on consumer needs. They not only have corresponding brands in different categories such as fresh milk, yogurt, milk powder, and cheese, but even within the same category, they further segment into more brands based on different consumer needs. Bright's brand matrix Image source: Bright Dairy Take yogurt as an example. Under Bright, there is "Rushi" (no-additive chilled yogurt), "Changyou" (gut health), "Shangwei" (leisure scenarios), "Jianneng" (health protection), "Morsilian" (ambient yogurt), and of course, the new "Yanjian" brand for 0-additive ambient yogurt, further segmenting the health-conscious group from ambient yogurt. Take milk as another example. Under Bright, there is "Youjia" (premium milk), "Bright Organic" (organic milk), and "Youbei" (fresh milk with 75°C pasteurization). There are even flavored milk beverage brands like "One Coconut" (coconut milk) and "Chocolate Effort" (chocolate milk). Youbei fresh milk Image source: Bright Dairy This multi-brand layout reminds us of Procter & Gamble's famous "multi-brand strategy." Even under the single need of "shampoo," P&G uses multiple brands to meet more specific consumer needs. Want anti-dandruff? P&G has Head & Shoulders; want smoothness? P&G has Rejoice; want nourishment? P&G has Pantene; want professional hair care? P&G has Vidal Sassoon... For Bright, although these brands are different, each has a clear positioning and is closely tied to the most authentic consumer needs. Ultimately, no matter which brand consumers buy, it is the "Bright" big brand that meets consumer needs. This is the advantage of Bright's "multi-brand strategy." 2. Find a Benchmark in Dairy Innovation: Freshness As mentioned earlier, the different brand concepts of the three dairy companies reveal their positioning differences. Only Bright's "Joy in Freshness" puts the "freshness" of dairy products first. In recent years, Bright has repeatedly emphasized in annual reports and public occasions that "freshness" is the core strategy of the Bright brand. Many of Bright Dairy's product innovations in recent years, such as 75° pasteurization technology and French low-temperature ceramic membrane filtration technology, are closely centered on making dairy products "fresher." Bright has also repeatedly established a "fresh" brand image at the macro level. In 2019, Bright held the "Fresh New Rise" Bright Fresh Category New Product Launch and released a series of "fresh" strategic new products such as Changyou "Probiotic Plus." In the same year, Bright also hosted the first China Dairy "Fresh Summit" and advocated for the introduction of a national standard for "fresh pasteurized milk." These actions by Bright convey a signal to the outside world: freshness can also be better. 3. Invest in Scientific Research and Innovation, Focus on Long-Term Interests Bright Dairy's investment in R&D is impressive. You may have noticed that the name "Bright Dairy Research Institute" has been mentioned multiple times in the previous descriptions. The formulas for the new "Yanjian" product, as well as a series of Bright new products like Rushi and Jianneng, all come from here. Bright Dairy Research Institute Image source: Bright Dairy According to Bright, the Bright Dairy Research Institute is a professional dairy research institute established by Bright Dairy. It also has the identity of "State Key Laboratory of Dairy Biotechnology," the only national key laboratory in China's dairy industry. Currently, the Bright Dairy Research Institute holds over 600 invention patents, and Bright is one of the dairy companies with the most invention patents in China. It is this early investment in scientific research that provides the innovative foundation for Bright's current series of technological breakthroughs. Investment in innovation is a common choice for brands with a long-term vision. -04-

Will Bright Dairy's Future Be "Bright"?

In October, Bright Dairy announced its third-quarter financial report. In the second half of the year, gradually emerging from the impact of the epidemic, Bright Dairy's various businesses achieved high growth, with net profit attributable to the parent company after deducting non-recurring gains and losses growing by nearly 50% year-on-year. In the third quarter, the company achieved overall revenue of 6.579 billion RMB, a year-on-year increase of 8.80%; net profit attributable to the parent company after deducting non-recurring gains and losses was 112 million RMB, a year-on-year increase of 47.72%. Bright believes that its ability to quickly recover from the epidemic and achieve "counter-trend growth" is inseparable from the "freshness" strategy it adheres to. Under the influence of the epidemic, consumers pay more attention to health, and the health concept represented by "freshness" naturally becomes more favored by consumers. Bright also revealed to us that the next growth point for the Bright brand will continue to closely follow the "freshness" theme. In August this year, Bright Dairy Chairman Pu Shaohua stated in a speech[4] that in the future, Bright has many directions to explore in the "fresh milk" market, mainly in three aspects. First, premium fresh milk, such as Jersey milk, whose market price can reach the level of imported ultra-pasteurized milk products. Second, Bright's pasteurized milk brand Youbei will launch lactose-free, semi-skimmed, and other products, with room for discussion in packaging and channels. Third, launch down-to-earth cold chain products, such as ultra-pasteurized products. Adhering to freshness and achieving counter-trend growth, will Bright Dairy's future still be "bright"? Let's wait and see. Article source: FBIF Food & Beverage Innovation (ID: FoodInnovation), Author: Tutu (Edmund) Important Conference Preview! January 19-20, Wuxi, Jiangsu New Distribution will join hands with 500+ FMCG distributors from five provinces in East China to gather in Wuxi, Jiangsu, to provide brand owners and distributors with a conference aimed at product selection and cooperation exchange. Make arrangements before the new year, and start working after the new year! Don't wait until after the Spring Festival to plan! Interested brand owners or distributors are welcome to contact us. Please scan the WeChat QR code below to register for attendance or exhibition. Exhibition Contact: Tips will be paid 400-2000 RMB once adopted.