DCP Completes Investment in Adopt A Cow, Backing a Leader in China’s Consumption Upgrade Megatrend
Apr 19, 2021
(Beijing, Hong Kong, April 19 2021) DCP announced the completion of its investment in Adopt A Cow Dairy Co., Ltd. ("Adopt A Cow" or the "Company"), a rapidly growing dairy product company in China with a Direct-To-Customer (DTC) approach. The Company will use the proceeds from investment to build best-in-class dairy farms and processing facilities, introduce high-grade Australian dairy cow breed and upgrade its supply chain to ensure the safety and high quality of its products. This round of investment was jointly led by DCP and KKR.
Founded in 2016, Adopt A Cow has been built on the principle that "high-quality milk comes from high-standard cow breeding." The Company is committed to providing consumers with safe and high-quality dairy products directly from the farm to the dining table. Adopt A Cow has successfully established an integrated dairy supply chain from cow breeding, pasture plantation, feed processing to dairy production and sales and distribution. Its high-quality dairy products are widely trusted and has rapidly developed a strong customer base. Adopt A Cow reaches its targeted consumers through innovative marketing methods including the use of live streaming and social media platforms and has quickly become a popular "new domestic brand" in the dairy industry, accumulating tens of millions of loyal customers.
In the past, China's dairy market has been dominated by traditional dairy brands. Existing dairy players focus mainly on offline channels and as a result, the online channel is underrepresented. Due to the rapid development of e-commerce and the trend among a younger generation of consumers for newer, more authentic brands, "new domestic brands" like Adopt A Cow are expected to take significant market share. As a rising star in the dairy industry, Adopt A Cow has continuously doubled its sales every year over the past three years, and achieved over RMB 100mm in sales during the "Double Eleven" sales event in 2020 from its TMall Flagship Store alone, establishing Adopt A Cow as the #1 selling dairy brand for the event. With the partnership with world-class investors, Adopt A Cow will further strengthen its competitive advantage and grow into an emerging market leader.
Mr. Xu Xiaobo, CEO of Adopt A Cow, said "The DCP team has a strong 28-year investment track record and has nurtured numerous leaders across many industries in China. In the dairy sector, DCP has successfully led investments in industry leaders like Mengniu Dairy, Modern Dairy, Asia Dairy, and has accumulated deep industry insights. The investment from DCP will bring us not only long-term financial support and industry connections, but also world-class operational capabilities and corporate governance practices. We look forward to working closely with the DCP team and continue to implement high-standard cow breeding and produce high quality milk for our customers."
Mr. Julian Wolhardt, CEO of DCP, said: "We are excited about this partnership. Adopt A Cow is not only an outstanding new dairy brand, but also an excellent dairy farm operator. The management team has both the deep insights in the consumer industry and the diligent approach in operating dairy farms. With the rising new consumption trends and continuous development in e-commerce, China's dairy industry will witness notable changes, which will present significant opportunity for innovative players like Adopt A Cow. DCP will bring our deep operational expertise and rich industry resources to help Adopt A Cow continue its rapid development and consistently supply safe and high-quality milk to consumers."