CHINA: General Mills starts yoghurt plant construction
Yoplait owner General Mills is looking to enter China's yoghurt market
General Mills, the controlling shareholder of yoghurt business Yoplait, has started building a yoghurt plant in China.
Chris O'Leary, head of General Mills' international operations, said the US food giant was eyeing China's "attractive" yoghurt sector and had begun construction on a facility in the east of the country.
"We have now broken ground on a new yogurt factory in eastern China," O'Leary said at the Consumer Analyst Group of New York investment conference.
"The yoghurt market in China is attractive to us. Category sales have doubled in the last five years to US$8bn and are projected to more than double again, in the next five years."
O'Leary told analysts General Mills would look to build a yoghurt business in China along similar lines to frozen food arm Wanchai Ferry.
"Once our factory is up in running we plan to follow the Wanchai Ferry model, start small in a few cities, prove out the business model and then expand," he said.
Fellow multinational and yoghurt giant Danone is selling yoghurt in China through a venture with local dairy processor Mengniu.
The growth of the sector has also attracted other companies. In November, Japanese food group Meiji Holdings started producing fresh dairy products for the Chinese market.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
General Mills focuses on growth by capitalising on current consumer trends in the US packaged food industry, most notably convenience, health and premiumisation. While the company has previously engag...
After its acquisition by General Mills, Yoki Alimentos diversified its portfolio, introducing new value-added products, such as popcorn with sweet flavours, new dehydrated soups under regional flavour...
General Mills continues its worldwide growth in packaged food, although it is challenged in key categories by lower growth in the mature US market. Integration of its key acquisitions (Yoki Alimentos ...
- Why Mars rice plan not just crop-ticking exercise
- Greencore's food-to-go focus paying dividends
- How Danone aims to meet its 2020 objectives
- ConAgra Foods: what could happen next? - analysis
- Interview: Ritter sees growth potential in US, EU
- Pinnacle to buy Boulder Brands in $975m deal
- Genius Foods buys UK gluten-free firm Chapel Foods
- Aryzta regional CEO steps down
- Maple Leaf Foods to cut over 400 jobs
- Hovis plans cuts amid anxiety over UK bread demand