Heinz To Acquire China’s Foodstar, Seeks Stronger China Presence

H.J. Heinz Company is planning to acquire Foodstar, a leading soy sauce and fermented bean curd maker in China. The acquisition is an effort to penetrate the country’s retail soy sauce market which is estimated at $2 billion and growing at 7% to 8% annually. Heinz says the acquisition would boost its annual sales in China to $300 million. Foodstar has a strong presence in southern China where its Master Weijixian brand is the top brand of Weijixian soy sauce. The company also has 2,500 employees and four manufacturing plants with a new facility under construction in Shanghai. Heinz said the acquisition is vital in strengthening its growth in emerging markets like China. Emerging markets, China included, generated about 15% of Heinz’s total sales for fiscal year ending April 2010. Heinz expects emerging markets to contribute 25 percent of sales by 2016.