Chinese media: “Meiji retreats from China in defeat” after selling its milk and yogurt business to a local company

Meiji Holdings has agreed to transfer its milk and yoghurt business in China to Shanghai Aoya Foods Co., Ltd., a subsidiary of Aoya Group, a major dairy cattle operator. The transaction covers all shares in Meiji Dairies (Tianjin) and Meiji Dairies (Suzhou), with the deal value reported at ¥320 million to ¥350 million, or approximately ¥7.6 billion to ¥8.3 billion, and completion scheduled by year-end.

The China business has remained sluggish in recent years. The Tianjin and Suzhou plants and Meiji (China) Investment Co., Ltd. reported operating losses from 2023 to 2025, while approximately ¥19.4 billion was recognised in fiscal 2025 as an impairment loss on assets related to the China business. The sale includes core intellectual property related to the yoghurt business and certain brand rights, but the Guangzhou plant is excluded. After the sale, Meiji plans to redirect management resources to other areas in China.

Guancha.cn said that reporting by Japanese media reflects a tendency to take a pessimistic view of China's dairy industry. Chinese food industry analyst Zhu Danpeng said Meiji's difficulties stemmed from its strategic positioning, citing insufficient differentiation from domestic brands. Other issues identified included a lack of sufficient price and quality advantages and an unbalanced sales-channel structure dating back to the company's entry into China in the late 1990s.

Comments from Chinese internet users included “too expensive,” “the price is too high to keep buying,” “the downturn in consumption is to blame” and “it is only natural to leave if you cannot win the competition.” Others said that “the era of worshipping foreign brands is over” and that “domestic brands now offer more choices.”