China Huiyuan Juice Group announced the sale of nine subsidiaries after failed efforts to diversify its product lines and reduce its founder’s influence, according to the Beijing-based Legal Weekly. Huiyuan put up the nine units for sale on June 18 [2015] at a price of 1.8 billion yuan (US$291.5 million), which represented a premium of 216 million yuan (US$34.7 million), the newspaper said…Full Article: WantChinaTimes July 2015

Key Points

  • In 2014, Huiyuan reported CNY 127 million (US$20.4 million) in losses, it first annual decline since its beings listed in 2007.
  • From 2013 to 2014, Huiyuan sold three subsidiaries (in Chengdu, Shanghai, etc.).
  • According to a representative of the China Food Business Research Center, Huiyuan has suffered from poor management from its founder and chairman Zhu Xinli (63 years old as of 2015).

ChinaAg Comments

  • In September 2014, Huiyuan announced plans to supply China’s military forces.
  • In May 2014, Huiyuan acquired Suntory China Holdings Ltd’s (Japanese beverage subsidiary) Chinese assets and planned to produce bottled oolong tea and coffee drinks (via Suntory).
  • In September 2013, two factories of Huiyuan were accused of using rotten and unripe fruit to produce juice. China’s Food and Drug Administration announced preliminary results that month that the Shandong branch Huiyuan did not produce juice with rotten fruit.
  • In 2009, Coca-Cola attempted to purchase Huiyuan for US$2.4 billion, but failed amid Chinese government pushback and a computer hacking attack on Coca-Cola’s deputy president for the Pacific region.
  • Founded in 1992 and headquartered in Beijing, Huiyuan is a beverage manufacturer whose product portfolio includes juices (fruit & vegetables), teas, distilled water and milk-based drinks.  Most of its products are sold under the brand of Huiyuan.

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