Tsit Wing Group, Mitsui & Co eye bigger share of China market

TSIT WING International Holdings Limited, one of the biggest food and beverage manufacturers and distributors in Hong Kong and Greater China, has announced Mitsui & Co., Ltd as its strategic investor. Both companies aim to expand their business into the food and beverage market in Hong Kong and mainland China. Tsit Wing is a provider of coffee and tea in Hong Kong and southern China where it accounts for an estimated 80% of the market. 

Mitsui will purchase less than 20% stake from Tsit Wing Group ’s sole shareholder, Hero Valour Limited, which is owned by Dr Peter Wong, chairman and CEO of Tsit Wing Group. Mitsui becomes the second largest shareholder of Tsit Wing Group and Hero Valour Limited remains the largest after the deal. The total consideration is about JPY 2.2 billion (HK$160 million).

According to a survey, the total scale of the food and beverage market in China has reached HK$2.6 trillion with a CAGR of 9.5%; food services wholesale market reached HK$0.9 trillion. There is a vast market potential and with the said cooperation, Mitsui will get customer access to Hong Kong and Southern China restaurants and food services sector for selling various products sourced from Japan and the global network through Tsit Wing Group.