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November 2, 2021

China’s Bright Dairy & Food Co. to take controlling stake in local dairy firm Qinghai Xiaoxiniu

Bright Dairy & Food Co. is buying more than half of the business through two transactions.

China’s Bright Dairy & Food Co. is to take a controlling stake in local peer Qinghai Xiaoxiniu Biological Dairy Industry Co. via two transactions totalling CNY620m (US$96.9m).

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  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
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The publicly-listed company is paying a group of sellers CNY130m for a 17.5% stake in Qinghai Xiaoxiniu.

Separately, Bright Dairy & Food Co. has agreed to buy a 42.5% stake from Huzhou Foxit Business Partnership and Huzhou Chenfeng Business Partnership for approximately CNY490m.

After the completion of both acquisitions, Bright Dairy & Food will hold 60% of Qinghai Xiaoxiniu Biological and the remaining 40% will continue to held by Wang Weisheng.

The acquisition still needs to obtain an anti-monopoly licence from China’s State Administration for Market Regulation.

Shanghai-based Bright Dairy & Food is involved in the development, production and distribution of dairy products. It offers products, including yogurt, butter, milk and cheese, under the Bright brand name.

Qinghai Xiaoxiniu Biological Dairy Co. has a product range including Tolunbao pure milk, Qinghai old yogurt and Treasure of Highland Barley yogurts. It is based in the province of Qinghai.

Bright Dairy & Food is majority-owned by Bright Food (Group) Co. Ltd, a state-owned Enterprise. Among Bright Food’s assets is a majority stake in Italian olive-oil maker Salov, the owner of the Filippo Berio brand.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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