TWG takes Mitsui as partner, takes aim at food and beverage market in China

Tsit Wing International Holdings (TWG), the largest provider of coffee and tea for the food services sector in Hong Kong and southern China, said on Thursday that Japanese giant Mitsui & Co will invest 2.2 billion yen (HK$160 million) for a stake under 20 per cent in TWG. 

Mitsui bought the shares from TWG’s sole shareholder, Hero Valour which is owned by Peter Wong, the chairman and chief executive of TWG. Mitsui becomes the second largest shareholder of TWG while Hero Valour remains the largest after the deal.

TWG said the two companies will expand business into the food and beverage market in Hong Kong and China. It said the deal  will help Mitsui get customer access to Hong Kong and Southern China restaurants and the food services sector.

“In recent years, the China market has become our key focus and our growth driver,” said Wong. “With Mitsui as our strategic investor, together we will tap into the vast opportunities in the China market and introduce high quality food and beverage services into China.”

With a market share of over 80 per cent in Hong Kong, TWG has a customer network that covers luxurious hotels and fast food chains including McDonald’s, Café de Coral and Sheraton.