February 19, 2015
Building upon its biggest ever capital investment of US$325 million into its plant in Singapore in September 2014, Mead Johnson has announced that it is adding capacity to its two U.S. facilities and those in the Netherlands; expanding its portfolio of products and flexibility of its offerings as e-commerce channels open up between China and the U.S.
The most significant evolution in the Chinese infant formula market has been the emergence of e-commerce, according to Kaspar Jakobsen, president and CEO of Mead Johnson. In response, the company has opened its own online store on TMall, the virtual mall hosted by Alibaba, and has joined Chinese social media site, WeChat with half a million followers.
Mead Johnson posted sales of US$4.4 billion in 2014 – up 5% over sales of US$4.2 billion posted in 2013 – this increase is being attributed to an increase in the U.S. birth rate, the emergence of the toddler segment within the industry, and the company’s lean operations.
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