KKR invests in China direct-to-consumer dairy firm
Tech-enabled company targets millennial, Gen Z populations entering prime consumption years
19 Apr 2021 | The Asset

Global investment firm KKR has invested in Adopt A Cow, a fast-growing, direct-to-consumer dairy company in China that integrates digital solutions into its core operations and whose new funding round was co-led by KKR and DCP Capital.

Founded in 2016, Adopt A Cow, which has more than 10 million customers and a digital sales strategy – including partnerships with opinion leaders, Tmall and other prominent e-commerce platforms – that aims to benefit from the growth of China’s millennial and Generation Z populations, which are entering their prime consumption years and increasingly seeking higher-quality goods and services.   

The company will use the funding to accelerate the construction of modernized dairy farms and smart production factories, bring in high-quality Australian dairy cows, and further integrate its digital operation platform to enhance efficiency and improve product quality and brand competitiveness.

“Consumption upgrades and food safety are among the key focused themes for our investments in China,” says Chris Sun, a managing director on KKR’s China investment team. “As a traditional industry, the dairy sector in China is going through an exciting period of technological innovation, driven by the fast development of the internet of things, increasing penetration of e-commerce and digital marketing, and higher demand for naturally healthy and nutritious products.”

KKR is making its investment from its Asian private equity fund, which builds on its track record in China’s dairy sector and supports industry-leading companies enabled by technology.