HONG KONG, Oct. 23, 2014 /PRNewswire/ -- Tsit Wing International Holdings Limited ("Tsit Wing Group"), one of the biggest food and beverage manufacturers and distributors in Hong Kong and Greater China, announced today the introduction of Mitsui & Co., Ltd. ("Mitsui") as its strategic investor. Together both enterprises will expand their business into the food and beverage market in Hong Kong and mainland China.
Mitsui bought less than 20% stake from Tsit Wing Group's sole shareholder, Hero Valour Limited, which is owned by Dr. Peter Wong, the Chairman and Chief Executive Officer of Tsit Wing Group. Mitsui becomes the second largest shareholder of Tsit Wing Group while Hero Valour Limited remains the largest after the deal. The total consideration is approximately JPY 2.2 billion (HK$160 million).
According to a survey, the total scale of the food and beverage market in China has reached HK$2.6 trillion with a CAGR of 9.5%, while that of the food services wholesale market totaled around HK$0.9 trillion. There is a vast market potential and with the said cooperation, Mitsui will get customer access to Hong Kong and Southern China restaurants and food services sector for selling various products sourced from Japan and the global network through Tsit Wing Group.
Established in 1932, Tsit Wing Group has now evolved into the largest provider of coffee and tea for food services sector in Hong Kong and Southern China. With a market share of over 80%, Tsit Wing Group has a strong customer network that covers luxurious hotels, international fast food chains and famous brands such as McDonald's, KFC, Cafe de Coral, Maxim's, Sheraton Hotel, Harbour Plaza Hotel, The Park Lane Hotel, China Southern Airlines and Shenzhen Airlines. In the financial year ended 31 December 2013, Tsit Wing Group recorded revenue of HK$772 million.
Mitsui was established in 1947 and is a giant integrated enterprise in Japan. Its food business, managed by Food Products & Services Business Unit and Food Resources Business Unit, are principally engaged in the processing of fruit juice, coffee, tea, sugar, dairy products and frozen foods. It is keen to apply knowledge regarding product development, food technology, quality control, logistics and other areas that developed in the Japanese food sector to other new overseas markets for a safe and stable food supply. Mitsui Alimentos Ltda., Mitsui Norin Co., Ltd. and Mitsui Foods Co., Ltd, companies wholly owned by Mitsui, are specialized in coffee roasting in Brazil, tea planting in Japan and wholesale of foods and beverages respectively. Tsit Wing Group foresees Asian operations could be expanded in a fast pace with the collaboration with Mitsui.
Dr. Peter Wong said, "As one of the largest local food and beverage providers, Tsit Wing has been actively expanding our business and elevating our services. In recent years, the China market has become our key focus and our growth driver. With Mitsui as our strategic investor, together we will tap into the vast opportunities in the mainland China market and introduce high quality food and beverage services into mainland China."
About Tsit Wing Group
Established in 1932, Tsit Wing Group has now evolved into the largest provider of coffee and tea for food services sector in Hong Kong and Southern China, with a market share of over 80%.
