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 recognised fruit juice brands in China.
Source: Suntory
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