Establishment of a Joint Venture with Chinese Beverage Company China Huiyuan Juice Group Limited
Suntory (China) Holding Co., Ltd. (Head office: Shanghai, President: Shozo Shirai, below, “Suntory China”) that is a wholly-owned subsidiary of Suntory Holdings Limited (below, “Suntory”) has agreed to establish a joint venture with Chinese beverage company China Huiyuan Juice Group Limited (Head office: Beijing, President: Zhu Xinli, below, “Huiyuan Juice”), and signed a contract on Thursday, March 20.
This development is the result of the shared intention of the two companies to expand sales of Suntory brand beverage products throughout all areas of mainland China (excluding Hong Kong and Macao special administrative regions). A new joint venture company will be established with Suntory (Shanghai) Foods Marketing Co., Ltd., a beverage marketing company and subsidiary of Suntory China, as the parent company. The investment ratio will be 50% for both companies and the majority of executives will be sent from Suntory China. The joint venture company will be the primary business entity for the Suntory brand, and the details will be determined later in meetings between the two companies.
In addition, to promote the expansion of the Suntory brand in all regions of China, Suntory is joining forces with Huiyuan Juice that has a strong foothold throughout China to build a new supply system for Suntory brand products. To achieve this, the rights to Suntory (Shanghai) Foods Co., Ltd., a beverage manufacturing company under Suntory China, will be transferred to Huiyuan Juice and Suntory will acquire a portion of shares in Huiyuan Juice, building a firm and comprehensive alliance between the two companies.
The Suntory Group entered the beer business in China in 1984 and the soft drink business in 1995. It has developed main brands such as Suntory Oolong Tea and Suntory Caffe Latte in Shanghai and Beijing that enjoy strong popularity. Huiyuan Juice is a leading fruit and vegetable juice manufacturer in China that entered the beverage business in China in 1992. The Huiyuan brand is currently one of the most highly recognized fruit juice brands in China.
Profile of Suntory (China) Holding Co., Ltd.
▼ Name Suntory (China) Holding Co., Ltd.
▼ Established 1999
▼ Headquarters Shanghai
▼ President Shozo Shirai
▼ Employees 4,799 (as of the end of 2013)
▼ Main Business Production and sales of beer and soft drinks,
mainly in Shanghai and the Jiangsu province of China
▼ Capital 42.2 billion yen (2013) *conversion of 1 yuan = 15.9 yen
Profile of China Huiyuan Juice Group Limited
▼ Name China Huiyuan Juice Group Limited
▼ Established 1992
▼ Headquarters Beijing
▼ President Zhu Xinli
▼ Employees 7,121 (as of the end of 2013)
▼ Main Business Production and sales of beverage products in China
▼ Capital 71.7 billion yen (2013) *conversion of 1 yuan = 15.9 yen