Danish Crown signs Memorandum of Understanding with Alibaba Group’s Tmall

The world’s largest pork exporter Danish Crown has signed a Memorandum of Understanding with Tmall, one of Alibaba Group’s business-to consumer e-marketplaces in China, at a ceremony in Copenhagen. Witnessed by Danish Minister for the Environment and Food Esben Lunde Larsen, the agreement will make high quality Danish Crown 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 – the number is based on the title of a well-known fairy tale – from one of Danish Crown’s cooperative members on the island of Langeland will be reserved for sale to Chinese consumers, ready for Chinese New Year in February 2018.

Danish Crown Group CEO Jais Valeur said: “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.”

David Lloyd, Managing Director UK, Ireland & Nordics Alibaba Group added: “Danish produce enjoys an excellent reputation in China and I am pleased to announce this agreement with Danish Crown today. 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.”

Tmall will be running an online marketing campaign aimed at Chinese consumers on their platform from 24 August for 3 days, which will heavily promote Danish food and products, including the Danish Crown brand.

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 EUR 600 million.

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