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November 2018

Danish fruit-drinks maker CO-RO invests in Asia through acquisition of China's JKD

CHINA – Danish soft drink specialist, CO-RO Food, has acquired the majority shareholding in Golden Creation Trade Co. Limited, trading as JKD for an undisclosed sum. The acquisition is expected to generate a 30% growth rate in 2019 for CO-RO in China in the HoReCa sector (hotels, restaurants, and catering).

CO-RO JKD will have Huiyuan distributor as the distribution partner for the company.

Huiyuan holds brand distribution licenses for a range of products in catering, including a license to sell juice products under the brand Huiyuan; China’s leading juice brand.

CO-RO owns the Sunquick brand, the largest international brand in the HoReCa sector in China and has exclusive rights to sell both Sunquick and Huiyuan in the HoReCa sector, and the acquisition seeks to achieve growth for both brands.

“CO-RO’s acquisition of JKD perfectly underpins our growth strategy in Asia. The Asian market is very important to us, as it represents approximately 25% of our total turnover.

In addition, the Chinese market is our largest one in Asia and clearly essential because of the high growth rate,” said Mr. Søren Holm Jensen, CEO of CO-RO.

Acquiring JKD means that CO-RO can now tap into the vast distribution net of JKD.

“CO-RO is very pleased with the acquisition of JKD; a strategic step which enables us to realise growth as part of our general expansion plan for Asia.

It is a great opportunity for increasing our Asian footprint with China as spearhead.”

During 2019, CO-RO and JKD will become integrated as one to allow for significant synergies while boosting strategic cooperation with Huiyuan.

Diversification and expansion

CO-RO has key production plants in China, Malaysia and Sri Lanka, where the trademark Sunquick enjoys a position as brand leader. The deal builds on CO-RO’s presence in these countries with the plant CO-RO Food (China) situated in southern part of China whereas JKD has a strong foothold in the northern part.

With the acquisition, CO-RO is now the only player in the Chinese market with a national distribution net of concentrated juice to the HoReCa sector and paves the way to a strategic cooperation with Huiyuan.