China: WhiteWave Foods Enters Joint Venture
The WhiteWave Foods Company, the largest organic food enterprise in
North America, has announced it is forming a joint venture with a
Chinese dairy company.
Broomfield-based WhiteWave will own 49 percent of the joint venture,
while its partner China Mengniu Dairy Co. Ltd. will own the rest.
WhiteWave, which distributes organic dairy products and fresh produce
throughout North America and Europe, said the joint venture is part of a
strategy to reach other parts of the world.
The Chinese government must still give its approval to the joint
venture, which is expected in the first half of the year.
The joint venture, which WhiteWave said "intends to manufacture, market
and sell a range of nutritious products in China," will begin with the
purchase of Yashili Zhengzhou, a company that's building a production
facility in China. Mengniu Dairy is majority owner of Yashili Zhengzhou.
The two companies will pay US $85 million for the company, with the
price divided according to their ownership of the joint venture.
It will be interesting to see how this new JV pans
out. Many years ago, Hain Celestial (another large American natural &
organic food company) entered similar deals / alliances in Asia. Ten
years later, Hain Celestial maintains a low presence in the Asian market
whilst it has continued to expand in Europe and the US. The Asian market
may prove a difficult one for WhiteWave Foods, as other American /
European companies have discovered.
Denver Business Journal / OM
Organic Fruit Deal with Chendu China
For the first time
in Sri Lankan Agricultural history, organic fruits will be exported on a
regular basis to Chendu China. These products will go to supermarkets
and other retail outlets.
This historic venture has been initiated by the Sri Lanka China Trade
and Investment Promotion Chamber (SLCTIPC), with North Western Province
(NWP) initially be selected for the project.
According to Chairman of the Chamber Nihal Aluvihare, they would be the
first organic pineapples, king coconuts and papayas going to China. "We
would export 10,000 kilograms each of papaya and pineapples and 15,000
king coconuts in the first shipment next month."
He said all suppliers would earn a premium as the current rate offered
to a king coconut was around Rs. 15 a fruit and they pay around
Rs. 50. Similarly they pay around Rs 45 per kilo for pineapple and
papaya. "This is more than double to what they get now."
The shipment is being coordinated by Green Field Private Ltd,
"With the assistance of the NCP Ministry of Agriculture we have already
identified the suppliers for the first shipment and the Ministry is now
in the process of identifying more suppliers who grow fruits
organically." He said that the order from China is very much larger but
they were unable to supply to meet this demand.
He said that this market was opened up subsequent to a 70 member Chinese
delegation of entrepreneurs representing 50 companies in the Chendu area
visiting Sri Lanka. "I placed an advertisement in the Daily News
requesting local entrepreneurs to come for a one to one meeting with the
Chinese businessmen and over 100 responded.
The visiting delegation also included the Vice Chairman of China Peoples
Committee, Yan Gheyan and Vice Chairman for Council Promotion of
International Trade, Yi Yang. This event was
also attended by the Governor of NWP, Tissa Ballale and Chief Minister,
The Chinese delegation which included companies representing IT,
Agriculture Trading, Fertilizer, steel and other areas have found many
partners subsequent to the one to one meetings that were held at
Galadari Colombo in early this month.
The Sri Lanka China Trade and Investment Promotion Chamber was formed
nearly thee years ago and the Chamber also took a Sri Lanka business
delegation to the Chendu Trade fair early this year. "Our next step
would be to introduce more products to this export list and black tea,
gem and jewellery are among the priorities," he said.
Although the volumes maybe small, the Sri Lanka
export deal demonstrates how China is going from an organic food
producer / exporter country to consumer. As the Chinese become more
affluent and more educated, they are demanding high-quality food
products. Organic foods are sought after as they avoid synthetic
agro-chemicals and assure consumers they are produced in an ecological
An update on the global market for organic food & drink (including
export openings) is regularly given at the
Sustainable Foods Summit. In 2014, this international series of summits will take place in San Francisco
(23-24 January), São Paulo (27-28 March) and
Amsterdam (5-6 June). More details are on the
Source: Daily News (SR) / OM
India: Dabur Acquires Northern Aromatics
The natural personal care company Dabur India
Northern Aromatics in Utterkand for RS 15 crore (US $2.4 million).
Norther Aromatics is acquired as a growing concern, along with its
manufacturing facility and all assets and liabilities.
The manufacturing plant is located at Plot no. 16, Sector -2, IIE,
Dabur India plans to use the facility to
manufacture food products, ayurvedic medicines and
natural cosmetics. Dabur India is one
of the largest fast-moving consumer goods companies
in India, operating for over 125 years.