Quick Take: Beverage Leader Nets $300 Million From State Food Giant
Chinese herbal tea maker JDB Group has secured a 2 billion yuan ($300 million) investment from state-owned food giant China National Cereals, Oils and Foodstuffs Corp. (COFCO).
COFCO’s packaging unit, CPMC Holdings Ltd., has thus become the second-largest shareholder of JDB, owning 30.58%. The investment amount was determined two months after the unit first announced its interest in August.
The investment “can increase the group’s profitability and consolidate the group’s leading position in the packaging industry,” CPMC said in a filing to the Hong Kong stock exchange on Tuesday.
JDB made a net profit of 1.47 billion yuan last year, up nearly 13%, according to CPMC’s filing. It was one of two producers of the Wanglaoji herbal tea, also known as Wong Lo Kat, a popular beverage that originated in the early 19th century.
But after a years-long dispute with the owner of the Wanglaoji brand — Guangzhou Pharmaceutical Group — JDB lost a series of lawsuits and was forced to pay millions of yuan in compensation. It was also required to stop using the Wanglaoji name, and its own drinks were rebranded in 2012 as “JDB.”
The company has been forced to spend heavily on marketing for the newer brand and for packaging adjustments, and has pushed forward its own string of lawsuits in a bid to regain rights to the Wanglaoji brand.
The latest investment will also help JDB “to enhance the market leading power of JDB herbal tea and promote the healthy and sustainable development of the herbal tea industry,” according to CPMC’s filing.
Contact reporter Coco Feng (firstname.lastname@example.org)
Sep 21 06:17
Sep 21 06:12
Sep 21 04:59
Sep 20 18:59
Sep 20 17:11
Sep 20 15:54
Sep 20 13:15
Sep 20 12:34
Sep 20 10:43
Sep 20 03:23
Sep 19 18:04
Sep 19 17:22
Sep 19 17:57
Sep 19 16:01
Sep 19 14:45
- 1Exclusive: Former Head of Citic Bank Is Under Investigation
- 2Update: China’s Economic Activity Slowed Further in August
- 3 Central Bank Bucks Expectation of Key Interest Rate Cut
- 4China’s 2015 Stock Crash Was ‘Inevitable,’ Former Securities Czar Says
- 5In Depth: Is China’s Animation Industry Ready to Take Off?
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas