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Manufacturing

Diary giant Mengniu is talks with Fifa regarding 2022 World Cup sponsorship

CKN
minutes 2019/04/01 07:52:44
2,032
Mengniu;Fifa;World Cup;Dairy Products

Apr 01, 2019 (China Knowledge) - China Mengniu Dairy, the country’s second-largest dairy producer is in talks with football governing body Fifa to sponsor the 2022 World Cup in Qatar as the company looks to boost its brand image and awareness globally.

The company was also a sponsor for the 2018 World Cup in Russia, sponsoring RMB 1 billion (USD 149 million) for the global sporting event which the company claims to have greatly helped it to promote its brand recognition and revenue.

According to the company, sales last year grew by 14% despite the company not offering any discounts compared to previous years where the company had struggled to achieve similar growth rates despite offering numerous discounts on their products.

The World Cup sponsorship in 2018 had helped Mengniu to generate revenues for RMB 69 billion for the year due to exclusive rights to sell yoghurt drinks and ice cream in World Cup stadiums and event-edition products such as foot-ball shaped ice creams for the event.

The partnership with Fifa is part of Mengniu’s global expansion campaign to promote its global presence through brand-building and innovation. At the moment, foreign sales still account for a relatively small proportion of the company’s total sales and the company hopes to expand this segment.

Mengniu is currently targeting expansion in the Southeast Asia market, starting operation of a new production plant in Indonesia last November before turning its sights towards Middle East and Africa.

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