Sequoia invests $171m in Chinese dairy products manufacturer

Zhenwei Guo, a managing director of Sequoia and a director of Junlebao, said in a statement that the GP would fully mobilize its resources in technology empowerment and brand establishment to assist Junlebao’s development.

In July last year, Mengniu Dairy - China’s leading dairy products player - sold its 51% stake in Junlebao to two funds backed by the Hebei provincial government for RMB4 billion. Mengniu acquired its interest in the company for RMB469 million in 2011. Chinese media reported that the Hebei government regarded Junlebao as a leading provincial enterprise and wanted it to operate independently.

The company took off in 2014 when it started producing milk powder. It became the fastest-growing formula brand globally selling 75,000 tons of milk powder last year. It was also the first Chinese company to achieve BRC A+ certification - the highest food safety level. Junlebao has now set its sights on becoming a global leader in formula and China's number one producer of low-temperature yogurt.

Sequoia is investing at the same price paid by the government funds when acquiring the business from Junlebao. The venture capital firm made its name as a technology investor but has also backed numerous retail players, including ZTO Express, Heytea, and Purcotton. Sequoia is one of several Chinese GPs that has accelerated its pace of deployment during the current COVID-19 epidemic.

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• Topics
• Greater China
• Expansion
• Consumer
• China
• Sequoia Capital