Blog: The 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?
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....
As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...
Low food prices continue to hold back inflation rates in the UK as the supermarket price war continues in the face of rising import costs. ...
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- Why Danone is withdrawing Dumex from Vietnam
- How PepsiCo is taking action on palm oil
- 2 Sisters chief Boparan buys Bernard Matthews
- Fonterra says value-added strategy paying off
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- MP calls for probe into Bernard Matthews "sale"
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Global Foodservice Market 2016-2020
- Global Food and Drinks Closures: Performance and Opportunities
- Fast Food Restaurants in the US - Industry Market Research Report