DCP invests in fast-growing company Adopt a Cow Dairy

DCP, a leading international private equity firm with an investment focus on China, just announced the completion of its investment in Adopt a Cow Dairy Co Ltd, a rapidly-growing dairy product company in China with a direct-to-customer approach.

This round of investment, with the amount of investment not disclosed, was jointly led by DCP and KKR. The company will use the proceeds from investment to build dairy farms and processing facilities with high standards, introduce a high-grade Australian dairy cow breed and upgrade its supply chain to ensure the safety and high quality of its products.

Founded in 2016, Adopt a Cow is a rising star in the dairy industry. It achieved more than 100 million yuan ($15.4 million) in sales from its Tmall Flagship Store alone during the "Double Eleven" shopping spree last year, making it the No 1 selling dairy brand for the event.

"China's dairy industry will witness notable changes, which will present significant opportunity for innovative players like Adopt a Cow," said Julian Wolhardt, CEO of DCP.

In the past, China's dairy market has been dominated by traditional dairy brands. Existing dairy players focus mainly on offline channels and as a result, the online channel is underrepresented. Due to the rapid development of e-commerce and the trend among a younger generation of consumers for newer, more authentic brands, "new domestic brands" like Adopt a Cow are expected to take significant market share, according to Wolhardt.

In the dairy sector, DCP has successfully led investments in industry leaders like Mengniu Dairy, Modern Dairy and Asia Dairy, and has accumulated deep industry insights.

"The investment from DCP will bring us not only long-term financial support and industry connections, but also world-class operational capabilities and corporate governance practices," Xu Xiaobo, CEO of Adopt a Cow, said.

Lv Xiaokun contributed to this story