Guangzhou China Jan. 30, 2011 -Natural Dairy (NZ) Holdings Limited (Natural Dairy) has launched about 11 franchise stores recently in Xiamen City, Fujian Province, which is followed by its failure to acquire UNBZ Trustee Limited (UBNZ) in December 2010, suggesting that Natural Dairy plans to expand business in China's dairy market.
Natural Dairy acquired 20% stake in UBNZ on 30 May 2010. UBNZ has about 22 dairy farms in New Zealand, which leads to Natural Dairy's assertion that it has 4 dairy farms in New Zealand, helping the company expand business in China.
The launch of 11 franchise stores is the first step for Natural Dairy's expansion in 2011. On 3 November 2010, the company invested USD12.056 million (RMB80 million) in bidding for prime time advertising slots in 2011 on CCTV (China Central Television, an effective way to build reputation) And the company also unveiled its plans to expand its dairy business in China in 2011. (Please refer to Dairy Products China News Vol.3 December Issue, p7)
The failure to acquire the remaining 80% of UBNZ may affect Natural Dairy's expansion, but the company declares that it will search and acquire dairy farms, which meet the company's requirements in remote area of Northern New Zealand.
Source: CCM International