Blog: Tingyi shares soar on PepsiCo China deal
Michelle Russell | 7 November 2011
Shares in Tingyi Holding Corp rallied in early trading today (7 November) following the firm's announcement of its deal with PepsiCo on Friday.
Tingyi has purchased PepsiCo's entire China bottling operations in exchange for a 9.5% interest in its drinks business. Before the announcement, Tingyi had suspended trading on the Hong Kong Stock Exchange on Friday, pending the "price sensitive transaction".
Tingyi's Hong Kong-listed shares opened 8.2% higher at HK$22.50 upon resuming trading today. At 1138 GMT, Tingyi was up 9.4% at HK$22.75, while Hong Kong's benchmark Hang Seng Index was up 0.3%.
While the deal will help PepsiCo expand its market share in China, it could also help Tingyi enlarge its product mix - Tingyi sells only diluted fruit juice products and has little exposure to the pure fruit juice sector.
The tie-up is one of only a few in which a Chinese company has acquired a foreign stake within its own borders and not the other way around.
Tingyi may have its hands full however; in 2010, PepsiCo's bottling operations recorded a combined loss of $175.6m, amid rising labour and raw material costs.
The long-running spat between US and Czech brewers has stepped up a notch after the Czech president described American beer as “filthy water” this week....
I've stopped short of covering it as a product launch story on just-drinks, but take a look at this. Released this month in the UK, Snuffle Dog Beer is already available in 25 markets....
PepsiCo received high praise when it announced it was to launch its stevia-based Pepsi extension True exclusively on Amazon in the US....
Sean 'Diddy' Combs, the US rapper and entrepreneur, has publicly turned against his apparent former favourite Tequlia brand, Patron, now that he is joint-owner of DeLeón Tequila....
- Why Chinese beverages won't conquer the world
- Gin: Plymouth's from Plymouth, London's from...?
- Is “Craft” the Next Big Thing for Soft Drinks?
- Coca-Cola pressure builds as bid rumours swirl
- Petropolis Finally Moving into SABMiller's View?
- Pernod launches online Ballantine's "experiment"
- Anheuser-Busch InBev cuts jobs in US shake-up
- Diageo targets Millenial women with Baileys push
- SABMiller returns to Brazil with Petropolis tie-up
- NPD - DeLeon Tequila's Platinum and Reposado
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Beer Opportunities: Beyond Standard Lager
- Global vodka insights - market forecasts, product innovation and consumer trends research
- The IWSR Global Trends Report 2014