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March 17, 2021

Fast-food group Yum China invests in poultry supplier Sunner

Yum China Holdings, the operator of fast-food chains KFC and Pizza in the Asian country, has bought a stake in one of the largest poultry suppliers in the market.

By Dean Best

Yum China Holdings, the operator of fast-food chains KFC and Pizza in the Asian country, has bought a stake in Fujian Sunner Development Co., one of the largest poultry suppliers in the market.

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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.
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New York- and Hong Kong-listed Yum China has acquired a 5% shareholding in Sunner, which the foodservice business described as “China’s largest white-feathered chicken producer”.

Sunner, listed on China’s Shenzhen Stock Exchange, is a business covering chicken breeding, farming and meat processing. The company, based in the south-eastern province of Fujian, is Yum China’s biggest poultry supplier.

“Yum China and Sunner are longstanding business partners. The management team of Sunner has demonstrated exceptional execution capabilities over the years,” Joey Wat, Yum China’s CEO, said. “With this strategic investment, we look forward to enhancing Yum China’s supply chain security and deepening our collaborations with Sunner, including in the areas of product development and innovations.”

US-based Yum Brands spun off its operations in China in 2016. Yum China Holdings has more than 10,500 restaurants in China. In 2020, its revenues fell 6% to US$8.26bn. Net income was up 10% at $784m. During the last three months of the year, revenues increased 11% to $2.26bn, or by 5% when excluding the impact of exchange rates.

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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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