On Friday, the new dairy brand Adopt A Cow announced its completion of a round B of financing, which was led by Meituan Dragonball and followed by new and existing shareholders such as DCP Capital, KKR and Gu Ming. The funds raised in this round will continue to be used for the construction of high-quality milk sources, modernized pastures and digital and intelligent industrial chains.
In April this year, Adopt A Cow just completed round A financing. That round of financing was jointly led by KKR and DCP, and followed by Haibang Shuhu and Guanghe Investment.
Adopt A Cow is a membership-based dairy brand with that supplies dairy products direct from origin. The company has now developed into a company covering the entire dairy industry chain and has integrated everything from production to distribution to sales. The company is committed to producing milk that consumers can drink with confidence. At present, it has introduced dairy products such as pure milk, yogurt, cheese sticks and milk powder, and, more recently some high-end products such as A2 milk and Jersey milk.
On the milk supply side, Adopt A Cow manages more than 60,000 purebred Holstein cows, and enriches the product line by selecting purebred A2 cows and introducing Jersey cattle into the herd. These cows only amount to about 1% of the cattle population in China.
In addition, Adopt A Cow also arranges dairy product processing. The brand’s first large-scale dairy processing base was put into production in Shandong province in October 2020. By introducing top production lines and processes such as Swedish Tetra Pak’s packaging and CAF (Cold Aseptic Filling) PET in France, the daily processing capacity of dairy products has reached more than 800 tons.
According to Sun Shijun, CEO of the company, the majority of Adopt A Cow customers are located in first-to-third-tier, large- and medium-sized cities, aged between 25 and 39, and consist mostly of mothers and urban white-collar workers. During the June 18th Shopping Spree this year, the sales volume of Adopt A Cow on Tmall’s platform ranked first in the flagship stores of dairy brand. In 2021, the revenue of Adopt A Cow is expected to exceed 2 billion yuan.
In October this year, Zhejiang Securities Regulatory Bureau of China Securities Regulatory Commission (CSRC) disclosed that Adopt A Cow had started to receive counseling on an A-share listing, and CITIC Securities would serve as its counseling institution from September 2021 to April 2022.