Danish Crown: Investment in China
Danish Crown

Investment in China

DENMARK, Randers. Danish Crown plans to invest app. DKK 300 mill. in a processing and retail product plant. It is to be situated in Shanghai and the production will be based on Danish raw material.

Today Danish Crown is already a big and successful exporter of fresh pork and the so-called “China goods” – i.e. trotters, ears, tails etc. which the Chinese love, appreciate and pay well for. Summing up Danish Crown is already measured in value Denmark’s second largest exporter of goods to China, only surpassed by Kopenhagen Fur.

But there is more to be had. The sale of meat to Chinese consumers continues to a large extent to be from so-called wetmarkets where the pig is sold cut into relatively large pieces, which the consumer can see and touch. However, China’s consumer pattern is rapidly changing.

“Actually three things are happening: Firstly, much of the consumption is moving into foodservice or restaurants similar to the USA or Europe. Secondly, we see a vast increase of e-Commerce where groceries are bought and delivered at home. This is growing immensely in China and cities such as Shanghai likely have the world’s most advanced e-Commerce market. The third trend is that consumers in supermarkets have also started buying retail packed products precisely as we know from Denmark”, says Jais Valeur, CEO.

Source: Danish Crown


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