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September 4, 2008


Feeling Juiced

Coca-Cola to Buy China’s Huiyuan for $2.3 Billion

“Coca-Cola’s purchase of Huiyuan, which is subject to Chinese regulatory approval, would be the biggest foreign takeover of a company in the Asian country … Huiyuan is the biggest fruit and vegetable juice company in China by market share with 10.3 percent … The Beijing-based company had 42.6 percent of the market for 100 percent juices last year.”

Established Chinese brand, new American ownership… I’m thrilled. (I prefer the Great Lakes brand of juices here, but I’m not sure how wide their national distribution is.)

Note that Coke is buying all of Huiyuan. Foreign investors eventually have learned that they must have total control … even 1% ownership by a Chinese party is absolutely guaranteed to cause trouble at some point. The poor French stuck with their 51% stake in Wahaha is one of the few public cases of a nightmare situation I’ve seen literally thousands of times in China.

4 Responses to “Feeling Juiced”

  1. drummania said:

    wrong link.

  2. C. Maoxian said:

    drum: Thanks, fixed.

  3. Joy said:

    My kids don’t drink soda, so while in China, it was a pain to find them something to drink — every restaurant mostly offer Seven Up or Sprite or Coke. They did not like Huiyuan or any branded juice over there.. And there were not too much choice. Lily prefers Cranbury… So we end up with giving them water or nestea.

  4. C. Maoxian said:

    Joy: Tea! Juice is terrible high-calorie junk, usually as bad as or worse than soda.

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