US ketchup maker Heinz has insisted it remains committed to driving growth in China despite the move to sell-off its frozen food business in the market, Long Fong Food.
Heinz has entered into a letter of intent with Chinese manufacturer, Sanquan Foods Co., who wants to acquire Long Fong for an undisclosed sum. Sanquan has indicated that it expects a deal to close in the next four months.
If the acquisition closes, Heinz’ remaining Chinese business will be focused on its FoodStar sources and condiments business, as well as Heinz-brand baby foods.
“The decision to divest Long Fong reflects our strategic focus on driving growth in ketchup, condiments and sauces and infant/nutrition in emerging markets, including China,” a spokesperson for Heinz told just-food.
“The transaction is also consistent with our global strategy to de-emphasise non-core frozen food businesses outside the US.”
Through this increased focus, Heinz plans to continue to drive its operations in China, the spokesperson emphasised.
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“Heinz remains strongly committed to accelerating our continued growth in China, where our businesses are well positioned for the future, led by Foodstar and its growing line of Master soy sauce, and Heinz baby food.”