Granarolo milk

Granarolo has officially introduced Granarolo Baby, the international version of its distinctive product line dedicated to the world of infancy, to the Chinese market. This new product line is designed to accompany children from zero to three years and beyond. The official launch took place at the 2023 Children, Baby, and Maternity Expo in Shanghai, the world's most important event dedicated to maternity. During the fair, the Italian Group showcased its comprehensive range of liquid products for infancy, tailored for different age groups: zero to six months, six to twelve months, and one to three years.

These products are made in Italy, utilizing 100 percent Italian milk sourced from partner farmers within the Granarolo supply chain, with formulations specifically designed for the Chinese market.

Granarolo has currently launched a range of products, including UHT infant milk in three stages: Stage 1 (zero-six months) available in a 6x100ml format, Stage 2 (six-12 months) in a 6x200ml format, and Stage 3 (one-three years) in a 6x200ml format. Granarolo is the only Italian company with a facility certified by Chinese authorities for exporting infant milk. According to a press release, "Granarolo's products were showcased at the fair, where both consumers and industry professionals had the opportunity to evaluate and savor them. The products garnered significant success thanks to their distinctive organoleptic profile characterized by the use of high-quality milk, setting them apart from other products on the market."

Granarolo Baby boasts another distinctive feature compared to both local and international offerings: the production of powdered formulas in a ready-to-feed liquid form. The official statement highlights that "this feature is especially practical for Chinese families, who have expressed particular appreciation for the product." During the event, representatives of the Group were interviewed by Sina News, the parent company of Weibo, the Chinese equivalent of Twitter. The interviews were published on the dedicated "mother and childcare" page, which boasts over 1.3 million followers. To support the launch of the product range, Granarolo has also opened its own page on the Chinese social media platform WeChat, a multifunctional app for communication and shopping. This channel will be used to share updates about the Brand, insights into the world of infancy, information about ingredients, and highlights of Granarolo's cheese products.

Gianpiero Calzolari (left), Chairman of Granarolo S.p.A. and Filippo Marchi (right), General Manager of Granarolo S.p.A.

Influencers are key

The opening of an account on Little Red Book (Xiaohongshu), an equivalent to Instagram, is underway. The strategy involves collaborating with influencers, key opinion leaders, and key opinion customers through live streaming and various partnerships. Additionally, a series of in-store promotion events are scheduled to take place in key babystore chains across major cities. These events will offer families the opportunity to explore the product range through tastings, Q&A sessions, and social sharing.

Granarolo is focusing on Far East markets. As outlined in the 2024-2027 strategic plan, the Company aims to strengthen its presence in foreign markets, with a primary focus on China, while the domestic market is projected to account for approximately 58 percent of the revenue by 2027. Meanwhile, in the preliminary reports for the 2023 closing (the financial statement will be presented in mid-March), the Company reported a turnover of 1.6 billion euros, representing an 8 percent growth and a "double-digit improvement in operating margin, which is now back to pre-hyperinflation levels."

Filippo Marchi, CEO of Granarolo, underlines that the Company's strategic plan aims to achieve a turnover of 2 billion euros by 2027, up 17 percent from 2023 and 50 percent from 2021, with 58.1 percent in Italy, 31.6 percent in Europe, and 10.3 percent in the rest of the world. The expansion focus is directed eastwards, particularly towards China and the Asia-Pacific (APAC) region.

"Starting in April, we will have our own trading company in China, Granarolo Shanghai Trading Company, a Chinese-registered company that can develop economic activities locally. Our products will be stored on-site. As for the quantities, we are currently below a thousand tons, and we would like to triple them. We aim to reach a turnover of 50 million euros by 2027, compared to our current turnover of 10 million," Marchi explained. 

The expansion strategy of the Bologna-based Company focuses on two main areas: cheese for culinary purposes, such as mozzarella, and mascarpone, for tiramisu production, and a third area focusing on liquid infant milk. "We are the only exporter of liquid infant milk in a market dominated by powdered alternatives," the CEO emphasized. "Our facility in Soliera, in the province of Modena, is the only one in Italy certified by Chinese authorities for this specific market," he added.

There is also a particular emphasis on whipped cream. "Within this product segment, we also include whipped cream, aligning with the trends of tiramisu and European products enjoyed by Chinese consumers, especially in chains like Starbucks, of which we are suppliers in China." While the upcoming trading company will primarily focus on the Chinese market, its scope extends beyond that. "We have a consolidated business of more than 15 million euros in Korea, where the market is focused on hard cheese and mozzarella. We will continue to work with those helping us penetrate the 7Eleven chain, which boasts over 7,000 corners in Korea. We have entered the chain with our cheese-based snack, Cheese Snack Granarolo, which is currently being distributed," Marchi said.