3rd Nov., 1999
Vitasoy forms joint venture in Australia
New production plant to tap enormous potential of soy
beverage market
Hong Kong, 3 November 1999 - Leading non-carbonated
beverage and food manufacturer and distributor based
in Hong Kong, Vitasoy International Holdings Limited
("the Group") announced today that it is entering
into a joint venture arrangement with National Foods
Limited to manufacture, market and distribute VITASOY
branded soy beverages for the mainstream market in Australia.
Under the arrangement, Vitasoy will be
the majority shareholder with an equity stake of 51
per cent. National Foods Limited - a leading Australian
milk processor and distributor which is listed on the
Australian Stock Exchange - will hold the remaining
49 per cent of shares. Total investment for the joint
venture is estimated at HK$120 million, which will be
financed partly by the respective shareholders' internal
reserves and partly by bank borrowings. Both parties
will sign the joint venture agreement soon.
Mr. Winston Lo, Executive Chairman and
Managing Director of Vitasoy, said: "We are pleased
to be in partnership with National Foods Limited and
firmly believe the synergies of the two companies will
further accelerate Vitasoy's business growth in Australia.
We plan to introduce fresh soymilk in addition to the
UHT (Ultra High Temperature) soy beverages currently
sold in the mainstream market and health food stores."
A new plant to produce fresh and UHT soy
beverages under the VITASOY brand will be built in Australia.
Construction will begin shortly and production is expected
to commence in about 12 months' time.
The establishment of a new plant represents
the first domestic production of VITASOY branded soy
beverages in Australia. Over the past decade, the Group
has been exporting all of its UHT soy beverages from
Hong Kong and has successfully established VITASOY as
the second largest brand by sales value in the fast-growing
mainstream market in Australia. In the meantime, the
current distribution arrangement there will continue.
Mr. Lo said: "We are confident that
the production of both fresh and UHT soy beverages in
Australia will help Vitasoy capitalise on the enormous
growth potential of the soy beverage market. Our aim
is to increase market share through National Foods'
strong nationwide distribution network."
He added that the enormous growth potential
in Australia was underpinned by the growing health consciousness
of Australian consumers and the increased publicity
of the health benefits of soybean.
It is believed that Australia is one of
the western countries which registers the highest consumption
of soymilk. Its per capita consumption of soymilk is
about 2.5 litres per annum, far higher than the less
than 1 litre per annum level in the United States, for
instance.
Mr Lo expects that global demand for soy
food and beverages will increase following a recent
health claim ruling by the US Food and Drug Administration,
which concluded that foods containing soy protein included
in a diet low in saturated fat and cholesterol may reduce
the risk of coronary heart disease.
Founded in 1940, Vitasoy International
has successfully developed and launched a range of over
30 products in more than 120 different forms and sizes.
These products are sold in over 20 markets around the
world. The Group is one of the largest and most established
manufacturers and distributors of non-carbonated drinks
in Hong Kong.
For further information please contact:
Alison Yau
Public Relations Department
Tel: (852) 2468 9644
Fax: (852) 2465 1008
e-mail:pubrel@vitasoy.com
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