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Research Report on the Mergers and Acquisitions of Chinese Fruit Juice Drink Industry, 2009

In China, the fruit juice drink refers to the drunken straight drink, made of fresh or frozen fruits and vegetables, the production of fruit and vegetable liquid products, and added water, sugar and acidulates etc to the fruit juice, concentrated fruit juice and vegetable juice (In China, the fruit content in the fruit juice drink is no less than 10%, if lower, it belongs to the other category drink)

 

China is abundant in the fruit resources. The total fruits yields stand the first in the world, apple yields ranking the first, and orange, pear and peach yields also ranking the front in the world. Although with a large population in China, the consumption volumes are very low, less than 10 kg annual per-capita fruit juice consumption. In 2008, the yields of Chinese fruit juice drink were 11.8 million tons, increased by 9.26% of 2007 but cut down sharply in the growth speed. It was mainly affected by the international financial crisis. On the one hand, the export growth speed declined. On the other hand, the growth speed of domestic market tended towards stability. In 2008, the scales of Chinese fruit juice drink market were about 50 billion Yuan (7.14 billion USD), up by about 10% of 2007.

 

If calculated by the world's average per-capita fruit juice drink consumption volumes, there still exists huge development space of the fruit juice drink in China. In recent years, Chinese fruit juice drink market showed the rapid growth trends. It is inseparable between the rapid growth in the fruit juice market and the awareness of consumers` health sense. Nowadays, when the consumers choose the drink, they not only buy the drink to quench their thirsty, but put more attentions on nutrition, health and safety.  For example, the previous popular carbonated drink in Chinese market is regarded as the unhealthy products by the consumers.  But the fruit juice drink is rich in vitamins, favorable to the body health, becoming more and more popular.  

 

The competitions among Chinese fruit juice drink enterprises are fiercer and fiercer. The major three competition groups are: first, the Taiwan-funded enterprises, such as Uni President ,Master Kong, success by the package creation and taste; second, the local famous enterprises, including China Huiyuan Juice Group Limited, Hangzhou Wahaha Group Co., Ltd.; third, the multiple enterprises, such as Coca Cola, and PEPSICO., Inc etc. At present, many famous brands exist in Chinese fruit juice drink market, such as Wahaha, Huiyuan, Nongfu Spring, Munite Maid and Tropicana etc.

 

By the end of 2008, more than 300 fruit juice drink enterprises were in China, most of which were medium and small enterprises. The annual revenues of 70 percent enterprises were less than 100 million Yuan (14.2 million USD). The mergers and acquisitions in Chinese fruit juice drink industry became one of the development trends. In Chinese fruit juice drink industry, many local and foreign funded potential enterprises tried to merge, going around the whole industry chains. Strengthening the control of the upstream raw material industry and the downstream channel control were all included in the development strategy plans of the fruit juice drink enterprises.  

 

In February of 2009, Chinese government approved the Adjustment and Revitalization of Light Industry, clearly putting forward the policy supports to the light industry, involved the fruit juice drink industry, such as the reorganization of food processing industry, the improvement of entry conditions, the supports of mergers and acquisitions and the promotion of industry concentration etc. 

 

On 3rd September, 2008, Coca Cola announced that they would merge China Huiyuan Juice Group Limited with 17.9 HKD (2.4 USD). If realized, 30 to 40 percent market shares of the sales revenues would be occupied by Coca Cola in Chinese fruit juice drink market, the largest giant of Chinese fruit juice drink market. On 18th March, 2009, Ministry of Commerce of the People's Republic of China officially announced that the acquisition of China Huiyuan Juice Group Limited by Coca Cola was prohibited in accordance with Article 20 of the Antitrust Laws of the People's Republic of China, which was the first unsuccessful merger and acquisition case since the implementation of Antitrust Laws of the People's Republic of China on 1st August, 2008.  Ministry of Commerce of the People's Republic of China measure made the mergers and acquisitions in Chinese fruit juice drink industry to use a new manner but not simply acquisition.

 

Under the influences of international financial crisis and the Antitrust Laws of the People's Republic of China, the mergers and acquisition in Chinese fruit juice industry still went on because the large quantities of medium and small enterprises in Chinese fruit juice drink industry. The key points researched in this report are what manners to merge and what direction to go for these enterprises.

 

The author wrote this report by the investigation into Chinese fruit juice drink industry and the references to the experts' suggestions.

 

More following information can be obtained in this report:

-Development Environments of Chinese Fruit Juice Drink Industry

- Present Development Situations of Chinese Fruit Juice Drink Industry

- Yield Capacity of Chinese Fruit Juice Drink Industry

- Merger and Acquisition Cases of Chinese Fruit Juice Drink Industry

- Success Elements of Mergers and Acquisitions in Chinese Fruit Juice Drink Industry

-Influences of International Financial Crisis on Merger and Acquisition Cases of Chinese Fruit Juice Drink Industry

- Major Enterprises and the Operations of Chinese Fruit Juice Drink Industry

- Development Trends of Chinese Fruit Juice Drink Industry

- Merger and Acquisition Trends of Chinese Fruit Juice Drink Industry

- Recommendations for the Mergers and Acquisitions of Chinese Fruit Juice Drink Industry

 

To get more details, please visit Research Report on the Mergers and Acquisitions of Chinese Fruit Juice Drink Industry, 2009

About the Author

Alice is an industry analyst in this field for more than 5 years with depth insight in the recent market trends. Based on the database, Interviews and research methods from China Research and Intelligence, she analyzes the development and opportunities in this industry clearly.

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