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Period: July 1, 2011 to August 1, 2011
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends
Market News  

GLG Launches Subsidiary To Exploit International Stevia Market Opportunities

Stevia developer GLG Life Tech Corporation has created a subsidiary to provide naturally sweetened zero and reduced calorie food and beverage formulations to customers outside mainland China. AN0C Stevia Solutions Company’s product lines will include natural sweeteners, natural flavors and natural colors in zero or low calorie beverage and food products. AN0C Stevia Solutions will focus on customer opportunities internationally; AN0C Anhui will focus on opportunities in China, Taiwan and Hong Kong. AN0C Stevia Solutions is also developing customer opportunities in the Middle East and India.

"GLG Launches Subsidiary To Exploit International Stevia Market Opportunities", Press release, GLG Life Tech Corp, July 26, 2011

Nestlé Acquires Controlling Stake In Singapore-Listed, China-Based Hsu Fu Chi

Nestlé has agreed with the Hsu family to acquire 60% of Hsu Fu Chi, a Singapore-listed manufacturer and distributor of confectionery products in China. The Hsu family will retain 40% of the company, with Hsu Chen remaining as CEO and chairman of Hsu Fu Chi. Nestlé offers to buy the shares of the company's independent shareholders who account for 43.5% of the shares in Hsu Fu Chi as part of the deal, which is subject to approval by regulators in China.

"Nestlé to enter partnership with Chinese confectionery company Hsu Fu Chi", Nestlé, July 18, 2011

Organic Food Market Booms In China, Reaches 5% Of Global Total

China's organic food market has grown significantly and now accounts for 5% of the world trade in organic foods, with the country ranking third in terms of size of organic farmland. Data from the China Organic Food Certification Center shows that China's organic food exports reached $350 million in 2006 (the latest data available).  Chinese exporters take most of the organic produce to markets in Hong Kong, Japan, and Taiwan. Some observers believe that the exports sector is the leading factor driving the organic food market's growth, while some analysts assert that domestic demand is the major growth driver.

"Organic food a growing biz for the health-aware", China Daily, June 27, 2011

P&G blasted for tough rules to get refunds

Shanghai Daily, July 22, 2011

China's elite enjoys untainted fruits

Asia Times, July 07, 2011

PepsiCo's Health Push

The Wall Street Journal, July 07, 2011

Products & Brands  

Average Prices Of Luxury Products In China Rose 7.7 Percent

Average prices of luxury consumer goods in China rose 7.7 percent in 2011, according to the Hurun Report magazine reflecting rising demand, import duties and foriegn exchange movements. Prices of yachts and of renting private aircraft increased the most, up 20 percent, while prices of accessories and cosmetic products rose 16 percent. Foriegn exchange movements has caused some companies to increase prices: since May the euro is up nearly 12 percent against the yuan while the Swiss franc is up nearly 29 percent. L'Oreal and Estee Lauder cited exchange rates and rising costs for their decision to raise prices of their high-end cosmetics by 8 to 20 percent.

"Luxuries cost nearly 8% more", China.org.cn, July 26, 2011

Nestlé To Acquire Majority Stake In Chinese Confectionery Company

Nestlé announced it is acquiring a 60 percent stake in Chinese candy and snack maker Hsu Fu Chi. Under the agreement, the founding family of Hsu Fu Chi will retain a 40 percent interest in the company and Hsu Chen will remain CEO. Nestlé said it is paying approximately CHF 1.4 billion ($1.7 billion) to acquire the stake in Hsu Fu Chi. Hsu Fu Chi’s product lines include sugar confectionery, cereal-based snacks, packaged cakes and the traditional Chinese snack sachima. In 2010, Hsu Fu Chi reported sales of CHF 669 million and an EBIT margin of 17.3percent. The completion of the transaction is subject to regulatory approval in China.

"Nestlé to enter partnership with Chinese confectionery company Hsu Fu Chi", Press release, Nestlé, July 11, 2011

Research, Studies, Advice  

Adolescent Obesity In China Is Associated With “Healthy” Western Lifestyle

In findings that run counter to patterns in Western society, teenaged boys from affluent Chinese families who are physically active and whose diet is rich in vegetables but not candy or junk food are more likely to be overweight. U.S. researchers looked at lifestyle questionnaire data from more than 9,000 Chinese middle and high school boys. Like Western teenagers, Chinese youth who slept and exercised less tended to be more overweight. But similarities ended there. Contrary to Western patterns, Chinese adolescents were more likely to be overweight: if they were boys; if they frequently participated in vigorous physical activity; and if they were younger rather than older. The findings suggest that “weight-related correlates might play different roles in Chinese culture than they do in Western cultures," researchers said.

"Correlates of Overweight Status in Chinese Youth: An East-West Paradox", American Journal of Health Behavior, July 11, 2011

Analysis Of Clinical Trials Finds That Green Tea Lowers “Bad” Cholesterol Somewhat

A meta-analysis of 14 clinical trials in which participants either drank green tea or consumed green tea extracts from three weeks to three months found that green tea was associated with a lowering of HDL or “bad” cholesterol, but not with a rise in HDL cholesterol. Green reduced total cholesterol an average of 7.2 mg/dL compared to the placebo. Meanwhile, LDL dropped by a a mean of 2.2 mg/dL, about two percent. The researchers suggested the possibility that these reductions could be due to the presence of catechins in green tea, which lower absorption of cholesterol in the intestines.

"Green tea intake lowers fasting serum total and LDL cholesterol in adults: a meta-analysis of 14 randomized controlled trials", American Journal of Clinical Nutrition, June 29, 2011

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