Danish soft drinks firm Co-Ro has bought the majority shareholding in Chinese distribution firm Golden Creation Trade (JKD).
The deal, which Co-Ro said marks a “large two-digit CNY million investment” is expected to generate 30% growth in 2019 for Co-Ro in China in the hotels, restaurants and catering sector.
JKD holds brand distribution licenses for a range of products in catering, including a license to sell juice products under the Huiyuan brand.
Co-Ro said it will now be able to tap into JKD’s “vast distribution net” as well as expand its product offering.
Søren Holm Jensen, CEO of Co-Ro, said: “Co-Ro’s acquisition of JKD perfectly underpins our growth strategy in Asia. The Asian market is very important to us, as it represents approximately 25% of our total turnover. In addition, the Chinese market is our largest one in Asia and clearly essential because of the high growth rate.”
He added: “Co-Ro is very pleased with the acquisition of JKD, a strategic step which enables us to realise growth as part of our general expansion plan for Asia. It is a great opportunity for increasing our Asian footprint with China as spearhead.”
During 2019, Co-Ro and JKD will become integrated as one which over time will allow for “significant synergies”, the Danish firm said.
Upon completion of the deal, Co-Ro said it will be “the only player on the Chinese market with a national distribution net of concentrated juice to the horeca sector”.
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.