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.
Heineken is gearing up for a product launch in Australia this month. But exactly what the product is, the brewer is not saying....
It's Summer in the northern hemisphere and the beer festivals are in full swing. Even the famously secluded North Korea is letting its regulation-cut hair down with the Taedonggang Beer Festival, name...
Drinks companies that use celebrities and influencers to endorse products via social media could be in line for some rule changes....
A couple of months ago, US-based Saltwater Brewery developed 'edible six-pack rings' in an effort to curb threats to wildlife....
- Craft spirits shake-out will be just the beginning
- How Treasury is rewriting the rule book - Comment
- The decline of the flagship beer brand - Comment
- Drinkable yogurt - The next drinks opportunity
- Coca-Cola India suspends bottling operations
- Diageo brands need "fixing and nurturing" - TWE
- Diageo revamps Gordon's gin bottle in UK
- SAB shareholders granted AB InBev vote split
- Craft Brew Alliance poised for AB InBev takeover?
- Diageo's Guinness Rye Pale Ale - NPD
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages