Tetra Pak's Path to Success in China
2018-12-03 10:52 Monday
Tetra Pak is one of the most advanced liquid milk and beverage packaging companies in the world. Although a Swedish company, almost all milk packaging in China is done by Tetra Pak. Tetra Pak's aseptic packaging technology not only facilitates the transportation and preservation of dairy products and beverages, but also greatly extends their shelf life.
Tetra Pak entered China in China, and has colaborated with Yili, Mengniu, Brightdairy, Want Want and other established domestic dairy and beverage companies. Tetra Pak currently holds 85% of the sterile packaging market in China. In 2012, one-third of Tetra Pak's total revenue came from China.
Innovation and Quality
Tetra Pak holds more than 5,000 patents, and is currently developing and applying for another 2,800 patents. At Tetra Pak's headquarters, researchers and technical personnel account for more than 70% of the total number of employees.
Tetra Pak's badar packaging rate is less than one in ten thousand, one half to one third that of Chinese packaging firms. In addition, the storage period for UHT milk packaged with Tetra Pakis about 1.2 to 1.3 times that of other similar products.
Tetra Pak was one of the first multinational companies to enter the Chinese market. It has played a vital role in the growth and development of China's dairy industry.
In the 1990s, when Yili, Mengniu, Brightdairy and other large domestic dairy enterprises were still small producers, Tetra Pak began collaborating with them. With the help of Tetra Pak packaging, Chinese dairy enterprises overcame t challenges associated with short shelf life and began to expand rapidly in the field of UHT milk, eventually growing into formidable producers.
However, Tetra's Pak's assistance was not charity. To gain a dominant position in the Chinese market, when selling bottling lines to dairy producers, Tetra Pak required them to exclusively use its packaging materials. As packaging is Tetra Pak's primary source of profit, the company even provided the bottling lines for free.