Study Buddy (Explorer): China's ‘Dairy Godfather' and his booming ice cream empire
Read the following text, and answer questions 1-9 below:
[1] The story of China's 'Dairy Godfather', who went from an abandoned baby to the head of a 3-billion-yuan (HK$3.25 billion) ice cream empire, is one of resilience and vision. Niu Gensheng, 67, founded the corporate giant Mengniu Dairy and created Aice, an ice cream brand popular across Southeast Asia.
[2] Niu was born into poverty in Inner Mongolia, a region of China known for its vast grasslands and deserts. His parents struggled to make ends meet. Unable to care for him, they sold him to a cattle farmer, who adopted him for 50 yuan (HK$54) shortly after he was born. When Niu was eight, his adoptive father lost his money, forcing Niu to sweep the streets and do hard labour with him. Later, both his adoptive parents died.
[3] In 1983, Niu became a bottle washer at a local dairy factory, which later became Yili, one of China's leading dairy companies. Over the next decade, he worked his way up to workshop director, gaining a deep knowledge of the dairy production process.
[4] By 1992, Niu was promoted to Vice-President of Production and Operations at Yili, where he reportedly earned an annual salary exceeding 1 million yuan (HK$1,086,500). 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.
[5] Niu used his experience and resources to launch Mengniu Dairy in 1999. At the time, his former employer, Yili, already had assets worth billions. Niu's unique marketing strategy focused on rural markets, using local dialects in advertisements and low prices to attract customers.
[6] By 2004, Mengniu's revenue reached 7.2 billion yuan (HK$7.8 billion). 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 market.
[7] Niu adopted the same strategy focused on small profits and high volume, with prices ranging from 900 to 1500 IDR (HK$0.42 to HK$0.70), making 'quality ice cream affordable for everyone'. Aice introduced popular flavours like durian and coconut milk coffee ice cream, catering to local cultural and religious preferences. They also provided small shops with free freezers and electricity subsidies to support local vendors.
[8] Today, Aice operates in more than 1,200 districts across Indonesia, with more than three billion yuan in annual revenue, securing its position as Southeast Asia's top ice cream brand. Niu describes his business philosophy as 'not about making the rich more grand, but about allowing the poor to live with dignity.' Niu is also deeply involved in philanthropy, funding initiatives that build schools across China and help children with serious illnesses in Inner Mongolia.
Source: South China Morning Post, April 13
Questions
1. In paragraph 1, Aice is …
A. the name of a company.
B. an ice cream brand.
C. an ice cream flavour.
D. Niu's nickname.
2. Why did Niu's parents give him away, according to paragraph 2?
3. In paragraph 3, what did Niu do when he first joined the dairy factory?
4. According to paragraph 4, Niu's goal was to …
A. become the vice-president of a dairy company.
B. earn more than one million yuan every year.
C. build China's largest dairy company.
D. none of the above
5. In paragraph 5, what geographic areas did Niu's unique marketing strategy focus on?
6. Find a word in paragraph 6 that means 'failed to notice'.
7. Decide whether the following statements about paragraphs 6 and 7 are True, False or the information is Not Given. Fill in ONE circle only for each. (4 marks)
(i) Aice is extremely popular with young children and university students in Indonesia.
(ii) To help small stores, Aice provided them with freezers and financial help for electricity costs.
(iii) Yili was China's top dairy company in 2005.
(iv) Aice only offers flavours in Indonesia that are popular with Chinese customers.
8. According to paragraph 8, how does Niu help children in Inner Mongolia?
9. Arrange the following events in Niu's life in chronological order from 1 to 4. (4 marks)
Aice is a popular ice cream brand in Southeast Asian countries like Indonesia and the Philippines. Photo: Handout
Answers
1. B
2. They struggled to make ends meet and could not take care of him.
3. He washed bottles.
4. C
5. He focused on rural markets.
6. overlooked
7. (i) NG; (ii) T; (iii) F; (iv) F
8. He funds initiatives that help children with serious illnesses in Inner Mongolia.
9. (a) 3; (b) 4; (c) 1; (d) 2
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