French milk producer Candia, part of the dairy co-operative Sodiaal, is to set up its first joint venture in China as part of plans to broaden its reach in the country.
Candia is to team up with local importer and exporter Zhejiang International Business Group to sell UHT milk and baby milk under the French group's namesake brand.
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They will focus on selling in China's Yangtze River valley region, encompassing Greater Shanghai, Jiangsu province and Zhejiang province.
The companies will focus on supermarkets, stores focused on maternity and childcare, as well as the e-commerce sector.
The two companies will also look to open more Candia-branded outlets in China. Candia opened three in 2014 in Wenzhou in China's Zhejiang province and are the business's only presence in the country. The companies plan to open 10 new stores a year.
They have set a target of annual revenues of over CNY1bn by 2020. Candia will hold 10% of the equity in the venture.
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By GlobalDataThe move will involve Sodiaal producing over 40m liters of milk per year in France. The milk produced in some of Candia's five French plants will bear the label 'Syndilait' and the words "Milk produced and packaged in France" for a market "that particularly appreciates the quality and traceability of French milk", Candia said.
The joint venture will employ 200 people in 2015 and up to 400 by 2018, Candia added.
