Acquisitions assure safety, burnish brands
The major food and dairy companies found international and domestic partners to strength production knowhow and expand product range. These relationships helped companies assure food safety and serve a more affluent public’s changing tastes and increased desire for variety.
The international partnerships burnished Chinese brands tarnished by the industry-wide food safety issue, and they often provided western companies with increased access to the Chinese market.
To control sourcing and ensure safety, Mengniu became the largest shareholder in China Modern Dairy, the giant dairy farmer. It also purchased a majority state in Yashili, a Chinese baby formula producer that obtains most of its products from New Zealand. The dairy brand Bright also searched for overseas acquisitions.
Shuanghui purchased Smithfield Foods, Inc., the largest pork processor in the United States. One of China’s largest frozen food producers, Sanquan, purchased HJ Heinz’s four Long Fong China packaged food subsidiary businesses. The brand value of the food and dairy category increased 62 percent.