PepsiCo has taken a stake in one of China’s biggest natural food companies, Natural Food International.
The snacking company is buying 26 per cent of the business for US$131 million making it the company’s second largest shareholder.
Natural Food is one of the largest natural food producers in China
and is based on the traditional Chinese diet. The company manufacturing products like grains, nuts and beans as well as powder products from black sesame, walnuts, goji berries and chia seeds.
Last year, Natural Food International’s revenue increased 15 per cent to 1.82 billion yuan (US$260 million).
PepsiCo said the investment indicates the company’s determination to accelerate its development in China, “an important market” to the business.
“It marks an important move under our long-term commitment ‘In China, for China,” Ram Krishnan, CEO, PepsiCo in Greater China, toldCNN.
This month, PepsiCo also invested in the South African company Pioneer Foods Group. Pioneer Foods portfolio includes cereals, juices, and healthy food products such as Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko and White Star.