Danish Crown Forms Chinese Online Alliance With Alibaba Group
Danish Crown, the world’s largest pork exporter, has signed a Memorandum of Understanding with Tmall, one of Alibaba Group’s business-to-consumer e-marketplaces in China, to make high quality Danish products available to the 466 million annual active consumers on Alibaba’s e-marketplaces. As part of the agreement, the meat of 1001 Danish pigs will be reserved for sale to Chinese consumers, ready for Chinese New Year in February 2018.
Danish Crown Group CEO Jais Valeur comments: “Partnering with Tmall has enormous potential for Danish Crown. Chinese consumers are buying much more of their food online than anywhere else in the world. By selling our products through Alibaba’s e-marketplace, we get access to a vast sales platform and ensure that Danish Crown can become a pork provider of choice for the growing Chinese middle-class.”
“Danish produce enjoys an excellent reputation in China,” says David Lloyd, Managing Director UK, Ireland & Nordics Alibaba Group. “Chinese consumers increasingly want reassurance that the meat they consume is of outstanding quality and reared to high-standards, and we look forward to working closely with Danish Crown to enable the 466 million annual active consumers on our e-marketplaces to buy quality Danish meat products on Tmall Fresh to enjoy at home.”
Danish Crown started exporting pork to China in 1998. In 2016, more than one full container load of pork was shipped every hour, every day, all year long. The majority is sold to Chinese distributors and the share of processed and packed meat for the Chinese market is growing rapidly.
The Danish Crown product range for Tmall will be picked, processed and packed at the Danish Crown facility in Ringsted, Denmark. In spring 2019 the production will move to a newly established Danish Crown factory in Pinghu, close to Shanghai, China. Last year Danish Crown exported more than 260,000 tons of pork to China representing a turnover at approximately Eur600 million.