Mengniu is the second-largest dairy producer in China, with the majority of its revenue derived from the liquid milk business; ice cream and cheese are smaller segments. After a management change in 2016, Mengniu has restructured its organization and distribution channel, which in our view has rejuvenated its liquid milk business and resulted in rebounding profit growth. The company's premium shelf-stable milk lineup, Deluxe, has been the number-one brand in China since 2020, which we think reflects improving channel execution and effective portfolio construction. Mengniu has currently built out a competitive liquid milk portfolio spanning shelf-stable, yogurt, and chilled products.