Kirin and China Resources to establish joint venture

Kirin will purchase 40% shares in the holding company of the non-alcohol beverage subsidiary of China Resources Enterprise, while transferring Kirin’s stake in each of its subsidiaries, Shanghai JinJiang Kirin Beverage & Food Co, Kirin Beverage (Shanghai) Co, Shanghai Kirin Beverage & Food Co, Beijing Flying Kirin Beverage Co, to the holding company.

Kirin’s investment amount in this transaction will be approximately $400m.

China Resources Enterprise is a leading consumer goods business in mainland China and Hong Kong. Its parent company is China Resources (Holdings) Co, which covers numerous sectors including retail, food, pharmaceuticals, real estate, power, gas, and finance in Asia.

China Resources Enterprise has established a network of more than 3,000 retail stores nationwide in China. Its principal company for non-alcohol beverage business is C’estbon Food & Beverage (Shenzhen) Co, with its major brand of C’estbon.

Kirin in China has expanded its business mainly in Shanghai, Guangzhou and Beijing areas to date, with its major brands of Kirin Go-go-no Kocha (black tea) and Kirin Fire (coffee).

Kirin’s stated vision is to become a leading company in Asia and Oceania in the area of food and health, and it has been pursuing its business strategy focused on growing profitability in these regions and areas.

Through the establishment of the joint venture, Kirin Group will further strengthen the foundation of non-alcohol beverage business in China to accelerate the expansion and development.

Source: Kirin Holdings