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?


BLOG

Olam to become "global leader" in cocoa with ADM deal

Singapore-based agribusiness group Olam International is to become a major international cocoa supplier after announcing a US$1.3bn deal for Archer Daniel Midlands' cocoa business....

BLOG

German watchdog rebukes retailers Edeka and Tengelmann

Germany's competition watchdog has issued an interim injunction against retailers Edeka and Tengelmann over their planned deal over the Kaiser's supermarket chain....

BLOG

Big business backs Aldersgate call for more equitable UK

The Aldersgate Group - an alliance of big business, NGOs and civil society pushing for a "sustainable economy" - has set out a new campaign calling for the introduction of a fiscal policy that tackles...

just-food homepage



Forgot your password?