Jif peanut butter and Folgers coffee maker JM Smucker has taken an “exciting first step” in its bid to develop a meaningful presence in China with the acquisition of a $35m stake in oat products maker Seamild.
Privately-owned Guilin Seamild Biologic Technology Development Co, based in Guilin in the Guangxi province ofChina, is best-known for its oatmeal sold under the leadingSeamildbrand, which is distributed in stores throughout China.
An exciting first step…
Smucker chief executive Richard Smucker said: "We are excited to enter the growing Chinese market through this partnership with Seamild.
“Seamild is a family-run business with a strong culture, similar to Smucker in many respects, and is an established leader in the rapidly growing oats category in China. The solid relationship our team has built with the Xie family has provided both parties with the confidence and enthusiasm to enter into this joint venture.
“This transaction represents an exciting first step as we look to develop a meaningful presence in China over time."
Seamild operates two manufacturing facilities in southern China. A third facility, currently under construction in northernChina, is expected to begin production in late summer 2012.