Synutra International, Inc. (SYUT)
News and Research on Synutra International, Inc. (SYUT)
Business Description
Synutra International, Inc., through its subsidiaries, engages in the development, production, processing, packaging, and marketing of dairy-based nutritional products in the People’s Republic of China. It primarily offers pediatric and adult nutritional products for infants, children, pregnant women, and nursing mothers, under the brand names of Super, U-Smart, U-Strong, and National Standards. The company also produces and sells retail packaged rice cereals, which extends its diary based nutritional product lines.
Subsidiaries
Qingdao Sheng Yuan Dairy Co., Ltd.: It is engaged in the sales and marketing of dairy based nutritional products for infants, children and adults under its brand names of Super, U-Smart, U-Strong, and National Standards.
Qingdao ST George Dairy Co., Ltd.: It is engaged in the production, packaging, shipping and distribution of all of Synutra’s products.
Beian Yi Pin Dairy Co., Ltd. (Beian): It is engaged in the production and processing of adult dairy based nutritional products and various milk powder products.
Luobei Sheng Yuan Dairy Co., Ltd. (Loubei): It is engaged in the production and processing of Synutra’s products for infants and children under the brand names U-Smart, U-Strong, and National Standards under the ‘Sheng Yuan’ label.
Zhangjiakou Sheng Yuan Dairy Co., Ltd. (Zhangjiakou): It is engaged in the production and processing of all of Synutra’s products under the brand names Super, U-Smart, U-Strong, and National Standards
In November 2006, the company established a wholly owned company, the Inner Mongolia Sheng Yuan Food Co., Ltd., to produce milk fat and other diary-based food ingredients. In addition, Zhangjiakou Sheng Yuan Co., Ltd., one of the company’s operating subsidiaries, entered into an agreement with the shareholders of Inner Mongolia Meng Yuan Food Co., Ltd. (Meng Yuan) to acquire 100% of the equity interest in Meng Yuan. At the close of the transaction, Meng Yuan transferred assets under its control to Zhangjiakou which included land use rights, plant equipment and plant buildings under construction.
Products
Synutra products include a line of pediatric and adult nutritionals. These products are mostly sold through distributors, or directly to consumers, sometimes on the recommendation of physicians or other healthcare professionals. The company's pediatric nutritional product lines, which include infant formulas as well as rice cereal products, cover the range of pricing tiers in the China marketplace.
Among Synutra’s pediatric lines, the Super series premium infant formula product contains DHA/ARA, (docosahexanoic acid and arachidonic) acid, long-chain poly-unsaturated fatty acids found in breast milk that may aid in the development of an infant’s brain, eyes and nervous system.
The company sells formulated milk powder products that are marketed for the elderly and women, students, and young adults under the Sheng Yuan label, with the brand designation of ‘U-Love.’ These products come in formulations that are developed to address health concerns of various age group consumers, such as those of middle-aged and elderly consumers in cardiologic health, diabetic conditions, and calcium deficiency.
In the adult formulated milk powder area, Synutra offers a range of products in whole milk powder, calcium plus, and a sweet powder, targeting a broader market. Under the label of U-Love, Synutra’s milk powder products for adults, women, and young adults also went through upgrades to further clarify the health and nutrition message and product image. The bulk of Synutra pediatric and adult nutritional products comes in three type of retail packaging: a tin canister, a standup/display pouch, or a sealed pack in a box.
Sales and Marketing
The company sells nutritional products directly to various distributors and some retailers, in addition to healthcare facilities and government agencies. The company markets its products in Hubei, An’hui, Yuedong, Yuexi, Sichuan, Chongqing, Hunan, Jiangxi, Yungui, Fujian, Heiji, Liaoning, Jinji, Henan, Ludong, Luxi, Xibei, Jiangsu, Zhejiang, and Beijing.
Suppliers
The company’s major suppliers include Beijing Honnete Dairy Co., Ltd.; and Martek Biosciences Corporation.
Competition
The company's major competitors include Nestle; Numico; Bristol Meyers Squib; Abbot Laboratories; Wyeth; Sanlu; and Yili.
