ThreeCalves offers differentiated products
ThreeCalves’ milk.

As the dairy industry develops, it’s no longer difficult for Chinese consumers to access milk. In 2018, the per capita annual consumption of dairy products in China reached 14.8 kg, up by 201% compared to 2004. At the same time, certain Chinese consumers shifted their purchasing habits towards high-quality and upgraded milk. 

According to Frost & Sullivan, the proportion of high premium milk in China’s milk industry is increasing YoY. The sales of high premium milk increased from 17.9 billion yuan (~USD 2.7 billion) in 2009 to 41.7 billion yuan (~USD 6.2 billion) in 2013. In the context of rising health awareness and fierce competition, will “functionality” become the keyword for brands to win the competitive race in the milk industry? 

There is still no specific definition for functional milk. Functional milk represents milk that contains and removes some special ingredients to meet consumers’ needs, including high-protein, high-calcium, and zero-lactose milk. In 2007, the first zero-lactose milk was introduced to the market, but most consumers at that time didn’t know much about “lactose intolerance”. Related data shows that in 2010, the production of zero-lactose milk in China was only 300,000 tons, accounting for only 1% of the total market.  

When it comes to homogeneous products, ThreeCalves (三只小牛) adopted a “differentiation” strategy according to specific target segments. For consumers who want to keep their current health status, ThreeCalves provides Holstein product line; for consumers who pursue better health, the A2 product line is the right choice; for consumers who have specific health needs, such as pressure relief, the Juanshan (娟姗 ) product line will be more helpful. ThreeCalves also offers “Sanling Milk (三零牛奶), namely zero-fat, zero-lactose, and zero-sugar. The brand also serves Ruan Milk (软牛奶), a type of zero-lactose milk for lactose-intolerant people. Consumers who are seeking products to help them sleep better can choose ThreeCalves’ “30 min before bed time (睡前30分)” product line, which contains GABA that helps in relieving pressure and anxiety.  

ThreeCalves positioned itself as a functional milk brand is a smart move in delivering a clear message to consumers and differentiating itself from the well-established dairy brands in China.  

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