Following General Mills and TIAN TU CAPITAL, Yoplait China, once a representative brand of premium yogurt, is set to welcome new ownership.

Recently, TIAN TU CAPITAL (01973.HK) announced the sale of its stake in Yoplait China to Kunshan Nuoyuan Ruiyuan Management Consulting Co., Ltd., with the total transaction valued at approximately 1.8 billion yuan—one of the few large-scale deals in the dairy industry in recent years. However, the announcement noted that the sale is expected to result in a loss of 847,000 yuan.

Yoplait China is the operational entity of Yoplait, the world’s second-largest yogurt brand, in mainland China. Founded in France in 1965, Yoplait officially entered the Chinese market in 2013 and was once synonymous with premium yogurt. In 2019, TIAN TU CAPITAL acquired Yoplait China, though the specific transaction price was not disclosed at the time.

According to TIAN TU CAPITAL, the sale aims to realize investment returns and fulfill exit obligations for its managed funds. On one hand, the proceeds will be used for other investment opportunities and business development. On the other hand, its subsidiary, TIAN TU Xingpeng, is currently in the fund exit phase and must divest its project holdings to return capital to investors and limited partners.

However, the sale coincides with a recent peak in TIAN TU CAPITAL’s performance. At the time of acquisition in April 2019, the firm highlighted dairy as a key focus, expressing optimism about the prospects of mid-to-high-end dairy products. Post-acquisition, Yoplait China faced challenges from the pandemic and industry adjustments, particularly between 2020 and 2024, when China’s chilled yogurt segment experienced a prolonged decline. Intensified competition from domestic dairy players further impacted Yoplait’s performance. The announcement revealed losses of 96.3 million yuan, 57.7 million yuan, and 39.7 million yuan in 2020, 2021, and 2022, respectively, due to the Yoplait China project.

In 2024, as China’s chilled yogurt market rebounded and Yoplait expanded its product line, Yoplait China’s performance improved. Revenue reached 450 million yuan in 2023 and 810 million yuan in 2024, with net profit after tax recovering to 8.394 million yuan and 95.454 million yuan, respectively.

Despite this, TIAN TU CAPITAL expects an 847,000 yuan loss upon the sale’s completion. This figure reflects audited project losses for 2024 rather than the actual investment cost. The company clarified that its financial reports are based on fair value measurements, with changes recorded in current profits and losses. From an initial investment perspective, the sale does not represent a loss.

Independent dairy analyst Song Liang noted that China’s yogurt market has weakened post-pandemic, especially in the premium segment, with Yoplait’s market share gradually shrinking. Facing fierce competition from domestic dairy firms and trendy yogurt brands, the sale appears timely.

The buyer, Kunshan Nuoyuan Ruiyuan, is a Chinese investment firm registered on March 20, 2025. Its secondary shareholders include Zhuhai Jiatuo Management Consulting, Nanchang Hexie Anrui Equity Investment, and Zhuhai Youge Management Consulting, with ties to IDG Capital.

Founded in 1993, IDG Capital focuses on investments in consumer tech, healthcare, and consumer sectors, with portfolio companies such as Three Squirrels, Xiaomi, and Pinduoduo.

Shen Meng, Executive Director of Chanson & Co., remarked that such project transfers are common. Different investment firms have varying backgrounds, preferences, and resource networks, leading to divergent valuations of the same asset. These differences do not imply absolute right or wrong judgments, nor do they guarantee the buyer’s success.

Song Liang added that the rapid rise of domestic consumer brands has pressured traditional international brands. How IDG manages Yoplait China remains to be seen.