Chinese company Bright Food to increase Australian presence
True to its word in early September that it would quickly dominate the Australian market, Chinese company Bright Food has announced plans to open an office in Sydney.
Bright Food is the second largest food company in China, and following its acquisition of 75 per cent of Australia’s leading independent grocery importer Manassen Foods Australia, it wants to become a global leader in the sector.
Manassen Foods includes the Margaret River Dairy Company, Sunbeam Foods, Chrystal Fresh, Angas Park and Don Vica.
Bright has confirmed its interest in entering other Australian markets including wine dairy, sugar and health supplements, the Australian Financial Review reports.
Bright’s Ge Junjie spoke told the Financial Review ahead of the first board meeting at Manassen since the acquisition that the cinoaby wants to use Manassen as vehicle to import more products into Australia.
It’s part of the company’s plans to make Australia a main focus.
“I extend an invitation to other companies who are interested in accessing the Chinese market by going through Manassen,” he said.
“Bright can offer these companies access.
“Part of Bright’s key focus following the Manassen deal will be Australia, especially the great wine sector.
“We are very interested.”
He dismissed the current trend towards private-label products, saying it will not have a major impact on the company.
“I’m not concerned that private labels will encroach on Manassen brands business,” he told the Financial Review.
“Bright will increase marketing and we believe the brands represent good value.
“Australia is a very sophisticated market and consumers can differentiate between private label products based on price and other branded products based on quality and are life-style driven.”
Australian farmers, manufacturers and industry groups have been calling for tougher regulation on the increase in private-label products, which they say are eradicating competition and local companies and will result in 130 000 workers in the food and grocery sector out of work by 2020.
The major supermarkets argue that the lower prices of private label products are beneficial to consumers, but companies and ministerial representatives say the move will negatively impact prices in the long run.
The company’s office will be located in Macquarie Place, Sydney.
Image: Shanghai Company News