PepsiCo announced that it will invest approximately US$ 131 million (approximately Rs 900 crore) to acquire Grain Mill’s approximately 26% of issued common stock. Grain Mill is the second largest natural health food company in China, focusing on high-end nutritional powders based on cereals. PepsiCo will acquire these shares from a minority of shareholders and will become the second largest shareholder after the founder of the Grain Mill. The founder of Grain Mill owns approximately 42% of the company. This investment demonstrates PepsiCo’s determination to accelerate its development in this important Chinese market.
PepsiCo has been operating in China for nearly 40 years and now offers a range of delicious and nutritious food and beverage products to Chinese consumers. Combined with Grain Mill’s unique, data-driven, direct-to-end consumer business model and a portfolio of products that meets Eastern tastes, this investment is seen as one that will accelerate PepsiCo’s journey to become China’s leading consumer-centric food and beverage company.
Commenting on the investment, Ke Ruinan, chief executive officer of PepsiCo China said, “We are deeply respectful of the achievements of the founder and management team of Grain Mill, and we are very excited to work with them to promote the company’s better development, production and transportation of products. Create value with every aspect of sales and sales.”
“The operation of Grain Mill is outstanding, with strong growth and good profitability. Our investment is also an important measure under the long-term commitment of PepsiCo’s ‘rooting China and serving China,’” Ruinan added.
Expressing excitement about the investment, Gui Changqing, chairman of Grain Mill said, “We are very grateful to PepsiCo for its continued interest and recognition of the Mill and for the valuable efforts of the teams to promote cooperation. We are once again deeply aware of PepsiCo’s outstanding achievements and leadership in the global food and beverage industry, and we are particularly excited about its determination to develop China’s natural health food market. The company has multi-channel and multi-dimensional strategic cooperation in the whole value chain including brand, product, channel, marketing and management. It will further develop and expand the market share and brand influence of Grain Mill, thus opening up the company’s future growth. For a vast space.”