About $2.4 billion bid is made by Coca-Cola Company to acquire China’s largest juice makers

September 5, 2008 · By ProfitEdition News Filed Under Features

On Wednesday Coca-Cola Company declared that it had made a bid of around $2.4 billion to acquire Beijing based Chinese Juice Giant. This deal for the China Huiyuan Juice Group represents Coke’s newest attempt to expand in China as well as this would be one of the largest foreign acquisitions ever of a Chinese company.

In 2007 Huiyuan, sales were about $380 million. While announcing the deal in Hong Kong, Coca-Cola refers Huiyuan as an extensive recognized and successful juice brand in China.

Coke and other major American and European food companies are seeking to construct deals and sell their brands in China as its food and beverage markets are expanding rapidly. Coke already sells over a billion bottles of Coke in China and products like Sprite and Minute Maid orange juice. Including this Coke was an official sponsor of the 2008 Olympics and in Beijing it forcefully marketed its brand in this summer.

Western brands like McDonald’s, KFC, Starbuck’s, Coke and Pepsi become popular in China middle class that is enlarged rapidly due to China’s economic sudden increase.

According to A.C. Nielsen, Huiyuan has approximately 46 percent of China’s fresh juice market in addition to this the company exports beverage products to 30 countries, together with the United States and Japan.

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