Chinese Dairy Producer Goes GlobalBeijing Sanyuan Food Co, Ltd is going global after striking an acquisition deal with US dairygiant Kraft on January 12 in Beijing.According to the contract, Sanyuan paid US$9.3 million for an 85-percent stake in Beijing Kraft Food Corp, Ltd to become the full stake-holder of the company, after already possessing a 15-percent stake in the company. Sanyuan is the largest dairy producer in the Chinese capital, offering varieties such as milk powder, yogurt, cheese, and fresh milk. The Beijing dairy giant realized a sales return of some 800 million yuan (US$96.4 million) in 2000. Sources with Sanyuan said that the company is not in a positionto meet future market demands with its current production capability. The acquisition deal is expected to help Sanyuan to bridge the production gap with Beijing Kraft's 200-ton daily producing capacity. Meanwhile, Sanyuan is to take full advantage of Kraft's international brand equity in order to tap the global dairy market. Beijing Kraft was established in 1993 and its milk products have been very popular with Chinese customers. |
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