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 online retail behemoth is again causing chatter throughout the sector, this time amid speculation it is set to launch more private-label products. ...
Talking with our readers, a common problem among them is their battle to keep tabs on the changes to regulations in China. And the recent moves Beijing has made to revamp its rules around e-commerce h...
Rumours Chinese pork giant WH Group is eyeing acquisitions, particularly in the US, have surfaced....
- Danone's global push for Danonino – interview
- How Hormel Foods can benefit from Justin's
- The balancing act at Amy's Kitchen - interview
- Tackling infant formula fraud in China
- RTRS looks for systemic solutions to progress
- Nestle sets new savings target
- ConAgra focusing on core with Spicetec sale
- Premier takes control of powders JV Knighton
- CP Group invests in Russian dairy production
- Amy's Kitchen strikes Picard deal in four markets