KKR; Adopt a Cow
Adopt A Cow is engaged in the production of pure milk. Credit: Couleur / Pixabay.

Investment firm KKR has invested in Chinese direct-to-consumer (D2C) dairy company Adopt A Cow through a new funding round.

The funding round was co-led by KKR and DCP Capital.

Established in 2016, Adopt A Cow is engaged in the production of pure milk, yoghurt, cheese sticks, and milk powder products.

The D2C operates in China with a vertically integrated business model covering alfalfa growing, dairy farming, milk processing and technology-enabled marketing.

Adopt A Cow founder Xu Xiaobo said: “Today marks an exciting new chapter for Adopt A Cow as we accelerate our strategy to bring our high-quality dairy products to more consumers in China.

“KKR has a proven track record of investing in the dairy sector and providing value-added operational support to homegrown technology champions and we look forward to working with them to take Adopt A Cow to its next level of success.”

The new funding will be used by the company to fast-track the construction of modernised dairy farms and smart production factories.

It plans to bring in Australian dairy cows and further integrate its digital operation platform to enhance efficiency, improve product quality and brand competitiveness.

KKR will invest in the D2C company through its Asian private equity fund.

The investment in Adopt A Cow builds on KKR’s long track record in China’s dairy sector.

It previously invested in China Modern Dairy and Asia Dairy.

KKR China investment team managing director Chris Sun said: “Consumption upgrades and food safety are among the key focused themes for our investments in China.

“As a traditional industry, the dairy sector in China is going through an exciting period of technological innovation, driven by the fast development of Internet of things (IoT), increasing penetration of e-commerce and digital marketing, as well as higher demand for naturally healthy and nutritious products.

“We are thrilled to be backing Adopt A Cow and its forward-thinking leadership team as the company carries out its disruptive strategy to change the way dairy is produced, marketed and sold to customers.”