What is the relationship between Danone and Kraft? Why did Danone join the Kraft family in cookies? Was it acquired like Huiyuan?

Recently, the reporter obtained confirmation from Kraft that with the American Kraft Foods Company1October 30th officially completing the acquisition of the global biscuit business of French Danone Group, 165438, Dailiana, director and general manager of Danone Biscuits China Company, has officially taken up her post and concurrently served as the general manager of Kraft Foods (China) Co., Ltd. in Greater China.

Dai Lina, who "supported the two companies with one hand", took office with the first thing: to fully integrate the business of Kraft and Danone Biscuits in China, including the biscuit brands, manufacturers, human resources and market channels of the two giants. At present, the integration work has been fully launched.

Kraft annexed its competitors.

"Kraft and Danone will hand over their jobs in March next year, when Kraft will take over Danone biscuits." In Xinfadi, the largest food wholesale market in Cheng Nan, Beijing, a first-class agent who also represents Kraft and Danone biscuits told reporters that rumors about the integration of Kraft and Danone have long been the talk of dealers.

The acquisition will enable Kraft, the world's largest biscuit supplier, to have six biscuit production bases in China and the largest biscuit market channel in China. Kraft will become the largest biscuit enterprise occupying half of the country. This has undoubtedly put a lot of pressure on other enterprises.

"Kraft will not hide the Danone brand, nor will it destroy it. We will respect its brand value. " Zhao Qiang, manufacturing director of Kraft Foods (China) Co., Ltd. in Greater China, said.

It is reported that Kraft, the world's number one biscuit manufacturer, spent $7.8 billion in this acquisition to acquire Danone's biscuit business in 22 countries (with annual sales of about 2 billion euros).

According to Kraft's quarterly report, Kraft's profit dropped by 30% in the first quarter of this year. The acquisition of Danone biscuits is an important step for Kraft to adjust its strategy.

For Danone, there is an indisputable fact: the sales of biscuit business dropped from 2.56 billion euros in 2004 to 265.438+0.9 billion euros in 2006. Danone can get rid of its declining business and focus on fresh dairy products and beverages.

Insiders of Kraft have said that although Danone's global biscuit business is declining, Danone's biscuit business has been slightly better than Kraft's in Greater China. Kraft's acquisition not only "swallowed up" a strong competitor, but also greatly widened the gap with other competitive brands such as Master Kong.

The channel is sinking, and it is difficult for small brands to hold on.

"At present, the total sales volume of domestic brand biscuits is greater than that of foreign brands, and the sales volume can reach the top position with Kraft." Gao Weiyuan, chairman of Beijing Lude Food Company, who has decades of experience in the bakery market, told reporters that the biscuits of Danone and Kraft are basically high-end products, and the high-end products in China biscuit market currently account for about 40%. Kraft has shown great ambition at present.

Li, Director of Public Affairs Department of Kraft China Company, said: "At present, Kraft Biscuits has implemented a two-step marketing strategy in China. First, we will double the coverage of the central city on the original basis, and then with the help of neighboring cities, we will triple the number of cities covered. "

Li said that in order to implement the two-step marketing strategy, Kraft must spread a full range of brand products to all retail stores in existing central cities. Kraft has specially launched a series of brand small packaging products to facilitate the display and sales of retail stores.

"According to the results of market research, traditional channels in Chinese mainland still occupy more than 50% of the market. We believe that the expansion of traditional channels can make Kraft products sell in depth in various channels in the city. We will further improve the distribution of traditional retail terminal stores, the management of wholesale markets and the market coverage of suburban counties and towns. " Li said to him.

"Some low-priced biscuits in China sell for five or six yuan a box." According to Gao Weiyuan, most domestic biscuit enterprises are mainly middle and low-grade products, which mainly occupy the third-and fourth-tier markets such as rural areas and small towns. This time, Danone and Kraft will become one company, which will inevitably continue to press the third and fourth tier markets on the basis of occupying the first and second tier markets. At that time, the way out for domestic enterprises was nothing more than seeking to be acquired or struggling to hold their own small positions. "

The channel is stronger.

"The acquisition of Danone will give Kraft all the market channels of Danone in China." Kraft Zhao Qiang admits.

"Compared with domestic brands, Kraft has done a good job in brand influence, and wholesalers are very relaxed." A Kraft dealer in Beijing Xinfadi Food Wholesale Market said that his wholesale target is small and medium-sized supermarkets and retail stores. In his hands, Kraft cookies can earn millions of dollars a year.

It is understood that Kraft divides the China market into three levels: large supermarkets, small and medium-sized supermarkets and small retail stores. At first, Kraft focused on the northern market. Now, in the northern market, Kraft's own direct sales team is basically responsible for large supermarkets. In the southern market, it is the factory direct sales staff and the first-class big agent * * * to maintain and develop big business and super customers. For small and medium-sized supermarkets and retail stores, Kraft is mainly responsible for the first-class wholesalers and second-class wholesalers of North and South biscuits.

"Four years ago, when a friend of mine got Kraft's first-class agent qualification in Beijing, he was the 22nd. It is almost impossible to get the qualification of Kraft's first-class agent in Beijing now. After developing a large number of first-class agents in recent years, Kraft began to strictly manage. A market only approves one or two first-class agents to prevent vicious competition from damaging the brand. " A distributor of domestic brand biscuits told reporters.

This means that Kraft is more and more strict in channel control. With the merger of Danone's sales channels, Kraft's channel advantages are becoming more and more obvious.

China Cheng World Biscuit Factory

Kraft will become the world's largest biscuit producer after acquiring Danone, and its annual sales will reach several billion euros. In fact, Kraft values not only the value of China market, but also the value of China production base.

At present, Kraft biscuits appearing in Australian, New Zealand, Korean and Southeast Asian markets are basically produced in China, and the latest news revealed by Kraft is that halal biscuits specially aimed at Islamic countries such as Jordan and Pakistan are also being supplied by Kraft's China production base.

"It is not difficult to produce more than 1 0.2 million biscuits per minute in the biscuit oven production line with a length of more than 100 meter in Beijing factory." Xue Jian, head of Kraft's Beijing factory, said.

According to reports, there is still a motion within Kraft to increase the chocolate wafer biscuit production line in Beijing factory. By then, Kraft's full range of biscuits can be produced in the Beijing factory.

In addition to expanding its own production capacity, Kraft successfully acquired Danone, which will have four Danone biscuit factories with an annual output of 80,000 tons. The industry believes that the export capacity of Kraft biscuit production will increase to several hundred thousand tons.

This means that China will become the largest Kraft biscuit production and processing base in the world in the future.