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”.
© FoodBev Media Ltd 2019