PepsiCo bets on healthy living, acquiring 26 per cent stake in China’s second-largest health food producer
- PepsiCo to become the second-largest shareholder in Shenzhen-based Natural Food International
- Natural Food shares surge 14 per cent in Hong Kong to close at a record HK$2.03
American beverage and snacks giant PepsiCo has agreed to buy a 26 per cent stake in Natural Food International, reflecting a strategic tie-up with China’s second-largest health food producer at a time when rising affluence is leading to change in dietary habits in the world’s most populated consumer market.
The price represents a 1.1 per cent premium to Natural Food’s closing price of HK$1.78 on Thursday.
Natural Food said it was PepsiCo’s “first strategic investment in China”.
Gui Changqing, chairman of Natural Food said in a statement that the tie-up with PepsiCo would help the company to grow its consumer base.
“I believe the tie-up will lead to a multidimensional partnership between Natural Food and PepsiCo that will encompass brand building, product development, distribution and sales,” said Gui. “The partnership will eventually increase our company’s market share and promote our brand awareness.”