| Q.P. Corporation
and its kewpie doll trade mark are synonymous with mayonnaise
in Japan. A joint venture with Mitsubishi Corporation is
preparing to begin making
mayonnaise, salad dressings, jams and other foods in the
Shanghai and Hua Nan vicinities in early 2003.
Mitsubishi Corporation holds a 20% stake in
the new company and will provide the venture with logistics
and distribution services. The big trading house has built
an extensive network of distribution centers in China. It
also has built good relationships with national and regional
government agencies, suppliers of raw materials and other
parties whose cooperation will be crucial to the success
of the venture. Q.P. Corporation owns 70% of the new company,
and China's Beijing Sanyuan Group General Company owns the
remaining 10%.
Management at Mitsubishi Corporation regards
food products as a growth sector for their company. Demand
for modern processing and distribution capacity is surging
in industrializing economies. Opportunities also abound
in Japan as escalating competition forces rationalization
on the nation’s byzantine distribution system. Ryoshoku,
a Mitsubishi Corporation subsidiary, is the largest wholesaler
of packaged food products in Japan.
Q.P. Corporation and Mitsubishi Corporation
are old friends and have worked together successfully in
previous projects. They have a joint venture in Japan, for
example, that distributes chilled, ready-to-eat salads to
supermarkets. Q.P. Corporation, meanwhile, already produces
and markets mayonnaise, salad dressings and jams in the
Beijing region through a subsidiary there.
|
Mitsubishi Corporation will help put the kewpie
doll onto more supermarket shelves in China.
