PepsiCo makes strategic China investment in natural food company

Date: 30 Jul 2019

PepsiCo Inc announced on July 26 that it will invest $131 million to acquire 26 percent of the issued ordinary shares of Natural Food International Holding Ltd, China's second-largest natural health food company with a focus on grain-based powder.

US-based PepsiCo will acquire the stake from minority shareholders of the HK-listed company and will become the second-largest shareholder behind Natural Food's founders who own 42 percent of the company. This investment signals PepsiCo's commitment to accelerate growth in this key market.

PepsiCo has been operating in China for nearly 40 years and provides a wide range of food and beverage products to Chinese consumers. Natural Food has its data-led direct-to-consumer based business model and Eastern-based portfolio.

The investment in Natural Food will advance PepsiCo's journey to become China's leading consumer-centric food and beverage company, the US company said.

"Natural Food is an outstanding business with a strong growth and profitability track-record, and our investment marks an important step in our commitment to grow 'in China, for China'," said Ram Krishnan, CEO of PepsiCo Greater China.

"We have significant regard for the company's founders and its management team for what they have achieved and we are excited to work together with them to grow this company even further and create value as they make, move and sell products."

"We really appreciate the interest and high regard that PepsiCo has shown for Natural Food, and we are grateful for the significant effort that has been devoted by both parties in facilitating this partnership." said Gui Changqing, chairwoman of Natural Food International Holding Ltd.

"Through our discussions, we have truly been impressed with PepsiCo's outstanding achievements and leading position in the global food and beverage market, and we are sincerely excited about its determination to develop China's natural health food market. I believe that this collaboration could unlock a multi-channel and multi-dimensional strategic cooperation between Natural Food and PepsiCo along the entire value chain in areas such as branding, products, distribution, marketing and management, which will in turn help to further develop and expand the market share and brand strength of Natural Food and open up broader opportunities for the company's future development," she said.

Source: China Daily

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