L'Oreal Buys Chinese Cosmetics Firm Magic Holdings International

L’Oreal acquired Chinese cosmetics company Magic Holdings International Limited, which marks the beauty company’s largest investment in the country so far. L’Oreal chairman and CEO Jean-Paul Agon said the deal strengthens the company’s leadership in China’s cosmetics market, currently the world’s third largest. Magic, which is China’s leading facial mask manufacturer, reported revenue grew 14 percent to €166 million in 2013. Currently the world’s number 1 beauty brand, L’Oreal reported its sales in China grew 10.2 percent to 13.28 billion yuan in 2013, marking the company’s 13^th consecutive year of double-digit growth rate in the country.

"L'Oreal's acquisition of Magic Holdings marks firm's biggest investment in Chinese beauty market", L'Oreal, April 08, 2014

L'Oreal Opens Maison Lancome Store At Beijing Airport's Terminal 3

L’Oréal Travel Retail Asia Pacific opened its Maison Lancôme store at the Beijing Airport’s Terminal 3, the world’s biggest airport terminal. Described by the company as an “important milestone,” the store features a podium design aimed at promoting the cosmetics company’s leading brands Advanced Génifique, Absolue, and Absolue L’Extrait. Featuring a high-tech skincare analysis machine, the store also includes the company’s first Wonderland merchandising showcase in Asia.

"L’Oréal Travel Retail opens Maison Lancôme at Beijing Terminal 3", The Moodie Report, March 31, 2014

Tate & Lyle Acquires Chinese Polydextrose Fiber Producer

British food ingredients supplier Tate & Lyle PLC announced it is acquiring China’s Winway Biotechnology Nantong Co. Ltd, a producer of polydextrose specialty fiber. Polydextrose is a low-calorie bulking agent and dietary fiber. The acquisition provides Tate & Lyle with “an excellent platform” for accelerating the growth of its specialty fibers business in Asia Pacific. Tate & Lyle said it will invest in the factory and laboratories in Nantong (Jiangsu Province) over the next two years to expand capacity. The Nantong factory will be the company’s third polydextrose facility. The transaction is subject to governmental approval which is expected later in the year.

"Tate & Lyle Acquires Winway Biotechnology, a Leading Chinese Polydextrose Business", News release, Tate & Lyle, March 13, 2014

Wal-Mart Protests China Fines; Calls On Government To Do More To Ensure Food Safety

After being fined $9.8 million over the previous three years by Chinese authorities, U.S. retailer Wal-Mart told China’s regulators that they also need to improve their product safety rules and policies. Some of the retailer’s alleged violations include misleading prices, selling products that did not meet quality standards and selling donkey meat that was later discovered as fox meat. In China, unlike in the U.S. and most other countries, manufacturers are not accountable for food safety problems. Instead, foreign-owned retailers, Wal-Mart in particular, often bear the brunt of government regulators’ actions. In contrast, regulators do not frequently visit stores owned by local grocery companies or often issue fines against them. Some market analysts said Wal-Mart’s risky move has enough basis, especially after the retailer had implemented various steps to ensure the quality and safety of food products it sells in the country.

"Wal-Mart Cries Foul on China Fines", Wall Street Journal, April 13, 2014

Foodservice Traffic Up And Down Around The Globe

Foodservice traffic fell slightly in Canada, Italy, Spain, China and the U.S. in the last calendar quarter of 2013, mainly because of “challenging economies” and “low consumer confidence”, according to researcher NPD Group. The opposite was true for Russia, Great Britain and Australia, where foodservice traffic rose in the same period, due to nice weather, improved economies and “a burgeoning foodservice market”. (Traffic in Russia rose a healthy seven percent.)  NPD said quick service restaurants, on-premises dining, and chains powered growth in the strongest markets. Many markets were held back by a weak quick service segment.

"Russia, Great Britain, and Australia Lead in Foodservice Traffic Growth in Last Quarter of 2013", NPD Group, March 19, 2014