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China looks to invest in Aus food industry

China’s second largest food company is rumoured to be making a purchase in Australia within six months.

Bright Food Group Inc has Australia and Europe in its sights as it looks to boost its overseas sales by up to 30 per cent in the next five years, Bloomberg reports.

Chairman Wand Zongman confirmed the company is looking to expand overseas.

“Many projects are under negotiations,” he told Bloomberg.

“The next acquisition may take place in half a year to a year.”

Wand said Bright Food is looking at food-distribution and sugar industries in Australia and Europe, and Shaun Rein, managing director of Shanghai-based China Market Research Group said it makes sense for the company to harness its good distribution network in China.

“Rather than spending the money and time building up new brands, it makes sense for them to acquire a well established foreign brand and leverage its strong distribution,” Rein said.

The company is considering bidding for the world’s second largest winemaker, Australia’s Treasury Wine Estates Ltd, insiders told Bloomberg.

The company is controlled by the Shanghai city government and was established in August 2006 by the merger of four state-owned companies.

Image: Bright Foods Chairman Wang Zongnan; Bloomberg

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