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Dutch food and beverage ingredients company Royal DSM announced that it has closed a joint venture agreement with privately-held biotechnology company Yixing QianCheng Bio-Engineering Co Ltd for QianCheng’s food enzyme activities. The JV creates a new company DSM (Jiangsu) Biotechnology Co. Ltd. DSM says the global market for enzymes amounts to € 2 billion and is growing by 6-8 percent per year. The Chinese market for food enzymes is one of the world’s largest and is experiencing growth rates far above the global average. DSM is the majority shareholder in the joint venture with 85 percent of the shares. Yixing QianCheng Bio-Engineering Co Ltd will own the remaining 15 percent.
"DSM strengthens enzymes activities through joint venture", Press release, DSM, June 09, 2011
Consumer goods manufacturers in China, including food companies, are launching products with smaller packaging to manage production costs. Smaller sizes also help companies to protect their bottom lines without running afoul of the National Development and Reform Commission's anti-inflation policies that encourage companies to maintain their prices. China's government, fearful of inflation's possible impact on economic growth and stability, are very sensitive of price increases and recently fined Unilever $300,000 for announcing future price increases in the media. Examples of smaller packaging moves include Cofco Coca-Cola Beverages Ltd.'s and Pepsi's release of 500-milliliter bottles and Master Kong's introduction of 450-milliliter juice bottles.
"The Incredible Shrinking Bottle", Wall Street Journal, May 20, 2011
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China Daily, June 07, 2011
The Nielsen Company, May 13, 2011
Wall Street Journal, May 05, 2011
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