Introduction: China's foodservice industry is in a rapid growth cycle, closely tied to economic development and rising per capita income. With China's 2018 GDP per capita nearing $10,000, the sector has entered a phase of fast consumption growth. The broad foodservice market (including dining out and food consumption) is currently valued at approximately RMB 8.2 trillion, projected to reach RMB 12.04 trillion by 2022, with a CAGR of about 7.1%. Image source: CITIC Securities Consumption in the foodservice channel is booming, and channel dividends are returning, bringing new business opportunities for food distributors. In this fast-moving environment, companies need to solidify quality internally and sharpen marketing strategies externally. Only by addressing both fronts can they stand firm in the fiercely competitive landscape and, with strong support, open a new world of foodservice. Good foodservice business grows from point to surface—from product quality to comprehensive menu development to viral hits—offering chain-style services that enrich distributors' business structures, help them seize opportunities, and drive business growth. -01- Dairy Giants Join Forces to Strengthen Foodservice Business Mengniu and Arla have formed a joint venture to boost their foodservice business and create a new dairy ecosystem in the industry. This new move deepens their partnership: European dairy giant Arla will inject its cheese business into the joint venture, and together with Mengniu, they will build the Arla brand focused on cheese, operated by the joint venture. Together, they will strengthen their foodservice operations. As a domestic dairy giant, Inner Mongolia Mengniu Cheese Co., Ltd. was established in 2018, wholly owned by Inner Mongolia Mengniu Dairy (Group) Co., Ltd. Its business scope includes the production and sale of dairy products, pre-packaged foods, bulk foods, food additives, milk-containing solid molded products, biscuits, candies, beverages (solid beverage category), and more. Arla and Mengniu had already established a cheese-focused joint venture in 2019. Currently, the joint venture's product lines cover children's cheese, snack cheese, table cheese, and premium cheese products, with brands including Arla, the premium cheese brand Castello, and the professional butter brand Lurpak. This completes an integrated chain from production and processing to end-sales. In boosting the foodservice business, the two dairy giants in the "cheese alliance" leverage their respective strengths. Arla primarily provides advanced cheese production technology and strong R&D capabilities, while Mengniu offers powerful marketing and promotion capabilities in China and extensive sales channels, helping transform foodservice from experience-based marketing to professional marketing and assisting distributors in quickly adapting to the volatile foodservice industry. While deepening product R&D, they proactively explore new paths, helping distributors find new marketing methods, cultivate a keen sense for "viral hits," enhance business acumen, and learn professional marketing techniques to keep distributors up to date. Strengthening the foodservice segment meets distributors' diverse foodservice needs and provides comprehensive solutions. This also aims to expand China's cheese industry, working hand in hand to build a cheese empire. -02- Innovative Products Seize New Growth Opportunities In the first half of 2020, the company introduced Danish premium cheese brand CASTELLO and premium butter brand LURPAK in the airline and hotel sectors to help clients enhance service quality. Despite the pandemic's impact, they actively sought change, expanded new channel opportunities, and collaborated with 10 foodservice merchants, including bakery trendsetter Paris Baguette, to conduct joint brand marketing via the food delivery platform Ele.me, introducing LURPAK butter pellets to the bakery market. In the second half of 2020, Arla's professional foodservice team will launch five new products. For the bakery market, in August, they will release a 2L large-pack chilled whipping cream, 100% imported from Denmark, to help large bakery chains with central processing plants improve operational efficiency. In the Chinese and Western cuisine sectors, catering to Chinese tastes and leveraging Denmark's R&D expertise in natural cheese, they continue product innovation. In September, an IQF natural mozzarella cheese product, better suited to Chinese palates, will debut in the Chinese market. For the explosive tea beverage market, following the healthy eating trend, Arla's professional foodservice team will launch a Danish pure milk fat base in September this year, solving the problem that pure milk tea is healthy but bland, while traditional milk tea is rich and tasty but unhealthy, injecting a healthy gene into new-style Chinese tea drinks. In the second half of the year, Arla's professional foodservice team will also launch two domestically produced mozzarella cheese and butter products in the foodservice e-commerce sector, creating a "national pride" product for Chinese consumers." -03- Innovative Foodservice Solutions Empower Distributors Arla will also adhere to the "4P" principle – Perfection, Professional, Performance, Passion – in its service and quality, meeting professional foodservice professionals' needs for perfect ingredients and craftsmanship through high-quality products, excellent service, and innovative menus. They aim to help every foodservice partner accurately seize opportunities in the rapidly changing market and move forward together, capturing foodservice market opportunities. Arla aspires to be the professional dairy partner for end foodservice clients, providing stable industry insights online, understanding market demand, grasping industry trends, and helping distributors deeply explore product performance and create hit dishes. As the "behind-the-scenes hero" for end foodservice clients, Arla needs precise market strategies and solid market support, accurately understanding market demand, and building brand IP. Insight into demand, innovative products; enhance brand, win at the terminal; grasp trends, create bestsellers. In marketing, Arla will not only conduct diverse offline market activities but also provide professional foodservice services and strengthen support in product usage guidance. Arla will spare no effort to create a new consumption experience that combines brand and performance for consumers and merchants. Arla's professional foodservice team persists in creating value for clients in the foodservice industry, not only providing safe and professional dairy products but also, to fully support distributors, continuously strengthening the functionality and segmentation of dairy products while ensuring quality, creating flagship products, empowering distributors, and helping them grow their business and establish a presence in the foodservice industry. Once the tip is adopted, a payment of 400-2000 RMB will be made.