Taiwanese group aims for juice dominance
a 5 per cent stake in China's largest fruit juice producer, a clear
sign that the mainland holds considerable attraction for the
ambitious Taiwanese firm.
The deal will see Uni-President join forces with China Hui Yuan Juice Holdings, a subsidiary of Beijing Hui Yuan Juice & Beverage Group, and has been heralded as a example of co-operation between Taiwan and its mainland neighbour at a time when political relations between the two countries are particularly strained.
Uni-President will spend US$30.30 million on taking the 5 per cent stake, and is reported to have beaten rival bids from Coca-Cola, PepsiCo and Danone.
The Taiwanese group has made little secret of its ambition to become one of Asia's biggest food companies, and other acqusitions or mergers are expected as Uni-President strives to build on its positions in China, the Philippines, Thailand, Indonesia and Vietnam. Chinese juice sales already account for around 50 per cent of the company's business on the mainland, and the Taiwanese firm already has 50 subsidiaries there. The aim now is for the two companies to combine their expertise to target juice markets in other countries throughout Asia.
Beijing Huiyuan Group is no stranger to expansion itself, having established more than 20 beverage processing plants over the last 10 years.
