China’s ‘Dairy Godfather’ rises from unwanted baby to head US$410 million ice cream empire

The rise of China’s so-called Dairy Godfather, from being an abandoned baby to becoming the head of a three-billion-yuan (US$410 million) ice cream empire, is a story of true resilience and vision.

Niu Gensheng, 67, is the founder of the corporate giant Mengniu Dairy, and the creator of Aice, an ice cream brand popular across Southeast Asia.

Born into poverty in Inner Mongolia, a northern region of China known for its vast grasslands and deserts, Niu’s parents struggled to make ends meet.

Unable to care for him, they sold him to a cattle farmer for 50 yuan (US$7) shortly after he was born, and the farmer adopted him.

At the age of eight, Niu’s adoptive father lost his assets after a political row, forcing Niu to sweep streets and do hard labour with him. A short time later, both of his adoptive parents passed away.

In 1983, Niu started as a bottle washer at a local dairy factory, which later became Yili, one of China’s leading dairy companies.

(Niu has swept streets and done hard labour on his way to the top in business. Photo: Handout)

Over the next decade, he worked his way up to workshop director, gaining a deep knowledge of the dairy production process.

By 1992, Niu was promoted to Vice-President of Production and Operations at Yili, where he reportedly earned an annual salary exceeding one million yuan (US$140,000).

Despite his success, Niu faced rumours and fierce competition at Yili, leading to his resignation.

But he did not give up on his dream of building China’s largest dairy company.

Niu used his experience and resources to launch Mengniu Dairy in 1999 with just 10 million yuan (US$1.4 million) in capital.

At the time, his former employer Yili already had assets worth 1.2 billion yuan (US$164 million).

Niu’s unique marketing strategy focused on rural markets, using advertisements in local dialects and low pricing to attract customers. By 2004, Mengniu’s revenue reached 7.2 billion yuan (US$985 million), and the following year it surpassed Yili to become China’s top dairy brand.

After building the Mengniu empire, Niu set his sights on the Southeast Asian market, which many other entrepreneurs had overlooked.

In 2015, he launched Aice, an ice cream brand targeting Indonesia’s lower-tier market.

Niu adopted the same strategy focused on small profits and high volume.

They also provided small shops with free freezers and electricity subsidies to support local vendors.

(Niu’s ice cream brainchild, Aice, has swept to success across Indonesia. Photo: Handout)

Today, Aice operates in more than 1,200 districts across Indonesia, with annual revenue exceeding three billion yuan (US$410 million), securing its position as Southeast Asia’s top ice cream brand.