Beston Global Food Company (BFC) has entered into a Joint Venture (JV) with the Sunwah Group for the marketing and distribution of its food and beverage products in Hong Kong, Macau and certain parts of China.
Beston’s Chairman Robert Sexton said the JV is expected to address certain deficiencies in the company’s Asian distribution system.
“We are strong in China and the ASEAN region with our own on-the-ground marketing and distribution teams but we lacked a direct presence in Hong Kong and Macau,” Dr Sexton said in a media statement.
Sunwah was founded in 1957 and has since developed into one of the largest importers and distributors of food stuffs in Hong Kong and Macau.
The company has a long standing specialisation in seafood products in the region and now operates one of the most comprehensive logistics and door-to-door delivery services in Hong Kong, with services to major hotels, supermarkets, air-catering companies, theme parks, fast food chains and restaurants.
Additionally, Sunwah owns and operates restaurants in Hong Kong and the People’s Republic of China, including the Nishimura Japanese Restaurant chain.
Dr Sexton said the formation of a JV with Sunwah was motivated not only because of the company’s substantial capabilities and highly regarded track record, but also because of its focus on business culture, strong ethical practices and community engagement, all of which aligned with the focus and objectives of BFC.
Dr Jonathan Choi, the Chairman of the Sunwah Group, said Sunwah was very pleased to have formed a JV with Beston as it recognised – and capitalised on – the relative strengths of the two companies.
“Beston has a wide variety of premium quality food and beverage products which are in high demand in Asia. Sunwah has a strong distribution business in Hong Kong and Macau, which has earned a reputation over a period of more than 50 years for the provenance of its products and the quality of service provided to its customers. We share a lot in common. It is a perfect marriage,” Dr Choi said.
“Sunwah is very active in both the business and the broader communities in which it operates as I am a firm believer in companies contributing to the societies where they have enjoyed success. I am pleased that the principals of BFC share the same values.”
Under the agreement, the JV will operate as a special purpose company in Hong Kong, with 51% of the shares held by Sunwah and 49% by BFC.
Sunwah will be responsible for utilising its existing distribution channels to market and sell BFC sourced food and beverage products in Hong Kong, Macau, Guangdong and Jiangsu provinces of the PRC, whereas BFC will provide products from its food and beverage portfolio to the joint venture, along with any supporting product information or technical expertise as may be required from time to time.