Zhe Jiang Li Zi Yuan Food Co Ltd (浙江李子园食品股份有限公司), a maker of milk-based beverages in China, has recently announced it has succesfully shipped 30 tonnes of its Li Zi Yuan sweet milk drinks to Thailand. The shipment marks the expansion of Li Zi Yuan into a key Southeast Asian market. The company added that it will continue to expand into Thailand, Myanmar and Laos.
Li Zi Yuan’s sweet milk drink has been a nostalgic favorite for generations, particularly among consumers in eastern China. Traditionally enjoyed as a breakfast beverage, it targets a demographic aged 10 to 30. However, with the increasing trend towards healthier options, the brand faces significant competition.
Expanding into Southeast Asia presents challenges for Li Zi Yuan. While the brand lacks the celebrity endorsement and recognition enjoyed by Yili’s Ambrosial, made popular by the TV variety show Keep Running, it can leverage its affordability and unique product offerings to attract a younger demographic, particularly school children. To further appeal to this target market, the company should consider reducing the size and cost of its PET bottles.
