FRUIT: Capespan Going East
Recent Western Cape Business News
CAPESPAN appears to be placing much emphasis on securing new points of presence in the Far East.
Just after the closing of the interim period Capespan snapped up the remaining 50% stake in Metspan, the Hong Kong based fruit procurement and marketing company, for an undisclosed sum.
Capespan acting MD Louis Kriel says this is part of the longer term strategy to grow the business in the Far Eastern markets. Capespan acquired the remaining 50% shares from another South African company, Metcash Trading.
Perhaps more significantly then was a deal in the middle of September that saw Capespan acquiring a strategic 25% stake in Golden Wing Mau, a Chinese fruit trading and distribution organisation.
Kriel reckons that with this deal Capespan can now fulfil its growth aspirations for China.
The Golden Wing Mau Group established itself on mainland China in the late 1990s and focuses on fruit production, packing, storage, wholesale, export, import and distribution to retailers.
The company also exports to more than 30 countries.
Kriel says the fast-growing and strong Chinese economy resulted in improved living conditions, increased disposable income, fruit consumption growth and a great platform for fruit business development.
“By enlarging our Far East footprint, Cape-span’s opportunities lie in exporting and distributing South African sourced produce into mainland China…”
He says it is noteworthy that supermarkets are set to become the main fruit and vegetable sales channel in China in the foreseeable future.
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