The deal would also give Fonterra a strong local partner, as Beijing continues to tighten regulatory oversight of the baby-formula market in response to growing public concern over food safety in the wake of several health scares. Beingmate had a 9. 4 per cent share of China's infant-formula market last year, according to market research firm Euromonitor International.
It hopes the partnership with Beingmate will help it to win market share from both local and multinational competitors at a time when demand for infant formula in China is expected to rise as the country eases its one-child policy. "They can add significantly more value to our Anmum business model when we put it all through their distribution," Fonterra chief executive Theo Spierings said in an interview, adding that Beingmate has relationships with some 80,000 outlets across China.
Read more here: Business Spectator