Blog: Dean BestThe challenge in China for Weetabix

Dean Best | 5 November 2012

Chinese food group Bright Food kicked off this morning (5 November) with confirmation of its acquisition of 60% of UK cereal firm Weetabix, a deal first announced in May.

Bright Food chairman Zongnan Wang said the agreement was a "landmark acquisition" for the Chinese company.

"Bright Food will increase the level of investment in Weetabix brands and product innovation to facilitate its development in the international markets. In particular, Bright Food is committed to leveraging its resources and extensive experience across all aspects of the food industry to underpin Weetabix’s expansion in Asia, in particular China," he said. "We are confident that with support from Bright Food, Weetabix's sales in China will outperform the growth of the Chinese cereal market."

Weetabix's previous owner, private-equity firm Lion Capital, was equally upbeat, with partner Lyndon Lea insisted he was "excited" about partnering with Bright Food "in extending the track record of growth that Weetabix has posted over the years".

Lion Capital and Weetabix's management will own the remaining 40% of the company. And while Weetabix CEO Giles Turrell was confident about the company's prospects, he hinted at the challenge that could lie ahead in China when he talked of developing "additional products which cater for the Chinese market".

As just-food reported when the deal was first announced in May, it remains early days for breakfast cereal in China. Ready-to-eat cereals, consumed with cold milk, have not been widely accepted by Chinese consumers.

Could Weetabix's Ready Brek brand, then, be the one to push and build on in China?


just-food hits the UK's airwaves

The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....


Ranjit Boparan buys another UK business out of administration

Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....


Tyson Foods investors left to chew over analyst claims

Shares in Tyson Foods slumped on Friday, closing down almost 9% after an analyst claimed a lawsuit facing the company could hit the US meat titan....

just-food homepage

Forgot your password?