China Food

Yum China at least 1.6 billion to acquire 5% equity of Sunon development! Become the second largest shareholder of the latter

After winning the controlling stake of Chinese food brand Huang Jihuang with nearly 1.3 billion yuan, the latest acquisition of KFC and Pizza Hut parent company Yum China “crossed the border” to the upstream industry. Yum China announced today that it has acquired 5% equity of Fujian Shengnong Development Co., Ltd. (hereinafter referred to as Shengnong). According to the zhongdeng company data provided to xiaoshidai, yum China has become the second largest shareholder of Sunon. Although Yum China did not disclose the amount of the transaction, according to the announcement released today by Xiaoshi Daicha Shengnong, the range of the above transaction amount is about 1.67-1.75 billion yuan. The announcement also showed that Yum China gradually increased its holdings of Sunon through its subsidiary Huansheng information technology (Shanghai) Co., Ltd. this year.

Photo source: Sunon Bulletin

According to the data of Yum China, founded in 1983 and headquartered in Fujian Province, Sunon has become a white feathered broiler producer with a production capacity of 500 million feathers, ranking seventh in the world and first in Asia. Shengnong’s vertically integrated business model covers the whole production chain, mainly including chicken breeding, feed processing and meat processing.



“We are pleased to be a strategic investor in Sunon, our largest poultry supplier. Yum China and Sunon are long-term business partners. “Qu Cuirong, chief executive of Yum China, said in the circular. Fu Guangming, founder and chairman of Shengnong, said that Yum China has been Shengnong’s biggest customer for a long time.


在供应链上,百胜中国向小食代形容,“智慧、高效 、敏捷”的供应链是其核心竞争优势,也是进一步扩张的关键所在。其在发布去年四季度业绩时也已透露,供应链是未来的重点投资方向。

According to xiaoshidai, after setting a new record for the total number of stores in the year with 1165 new stores last year, yum China plans to open stores at a high speed this year. “We intend to maintain this store growth momentum in 2021 and beyond, and achieve the next 10000 store opening target faster than the first 10000 stores.” Qu Cuirong said at the 2020 performance meeting at the beginning of the year that the company is actively tracking 700 cities that have not yet been covered.

Yang Jiawei, chief financial officer of Yum China, also revealed a “big investment plan” for the next five years at the meeting. According to the company, most of the money will be used to speed up the expansion and upgrading of the core brands KFC and pizza hut under the plan, which may cost as much as 8 billion US dollars (roughly equivalent to 51.7 billion yuan). By the end of 2020, yum China has 10506 head offices, covering more than 1500 cities and towns.

在为扩张铺路之外,百胜中国出手收购或许也受到了疫情推动。该公司表示,2020年新冠疫情的爆发进一步凸显了规模化、 灵活化、可持续化供应链的重要性。从原料提供到物流保障,从产品研发到食品加工,餐饮企业开始进一步审视供应链,并持续加大整合的力度。

In addition, yum China also believes that the potential of China’s chicken consumption market is ideal. According to the economist, Chinese residents’ consumption of chicken is far lower than that of western developed countries. For example, the consumption of chicken in the United States accounts for 40% of the total consumption of meat food, while it is only 23.6% in China. There will be a huge room for growth in the consumption of chicken.



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