Multinational moves in the food and beverage industry
Beer giants eye China
According to Wall Street Journal report ("Global Brewers Prepare to Tap China", 12/31/2003), world brewers SABMiller (#1 in the world) and Interbrew (#4 in the world) are entering the expanding Chinese market, Miller Beer is supposed to be well suited to Chinese taste for light lager styles. Interbrew is planning to introduce its Beck's, Pilsner Urquell, and Stella D'Artois brands.
While Heineken, Carlsberg, and Interbrew had limited success in the 1980s and early 1990s against cheaper local brews, the rising middle class in China gives some hope for SABMiller and Interbrew to have better luck this time.
Wrigley to acquire Joyco
Wrigley, which is the biggest maker of chewing gum in world, announced it will buy Joyco, the confectionery division of Spanish food company Agrolinen. Joyco has operations in 70 companies. Among the brands Wrigley will acquire are Pim Pom lollipops, Boomer bubble gum, Solano candy, as well as chewing gum. Wrigley is still dominant, but faces competition n chewing gum from Nestle and Colgate-Palmolive. Like many other US companies, it is realizing that growing can best come through international expansion.
Asahi acquires Chinese beverage assets
In a three-way joint venture, Asahi Breweries of Japan (along with trading company Itochu Corp.) is acquiring 50% of the beverage business of China's Tingyi Holdings Corp, Tingyi, based in Hong Kong, is considered by the largest vendor of bottled-tea in China, and the second largest juice company.
This is the latest step in a war between multinationals. According to the Wall Street Journal ("Asahi, Itochu Will Buy Chinese Drink Business", 1/5/2004):
Beverage titans such as Coca-Cola Co., Nestle SA and others have poured money into China in recent years, hoping to grab a bigger chunk of one of the world's fastest-growing drink markets. The country's nonalcoholic-beverage market was about 23 billion liters in 2002, according to market-research firm Euromonitor International, and is growing at around 13% a year.
