Foreign funds pour into fruit juice firm
By Zhang Lu (China Daily)
Updated: 2006-07-04 09:28
China's leading fruit juice-maker Huiyuan has received over US$200 million in
overseas investments, the Beijing-based company said yesterday.
Groupe
Danone, Warburg Pincus, the Netherlands Development Finance Company (FMO) and
Value Partners bought a combined 35 per cent stake in China Huiyuan Juice
Holdings Co Ltd, a Cayman Islands-registered subsidiary of Beijing Huiyuan
Beverage & Food Group Co Ltd (Huiyuan Group).
The French food and
beverage giant Danone owns a 22.18 per cent share in China
Huiyuan.
"Funds raised through the strategic investment will be used in
building the company brand and sales channels, improving research and
development, and expanding production capacity," said Zhu Xinli, chairman and
president of Huiyuan Group.
But detailed plans have not yet been made, he
said.
"Co-operating with these strategic investors will help strengthen
our competitiveness and dominant position in the country's fruit juice market,"
said Zhu.
For overseas investors, Huiyuan and China's fruit juice market
presents a good development opportunity.
Sources from the China Beverage
Industry Association say the fruit juice market in China has been developing
rapidly in recent years.
However, the per capita juice consumption is
only less than 2 litres a year, much lower than the per capita consumption of
over 40 litres in developed countries.
"Market demands for pure fruit
juice and juice beverages are growing quickly," said Zhao Yali,
secretary-general of the beverage association.
According to Zhao,
consumption of fruit juice drinks account for around 20 per cent of the
country's total beverage market, and the proportion is expected to continue
rising.
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