Wahaha Joint Venture Company
Chinese food and beverage joint venture company / From Wikipedia, the free encyclopedia
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The Wahaha Joint Venture Company was a food and beverage joint venture company established between the Hangzhou Wahaha Group, the largest beverage producer in China,[1] and Danone, one of the world's largest food conglomerates.
Company type | private |
---|---|
Industry | Food |
Founded | 28 March 1996 |
Defunct | 2009 |
Successor | Hangzhou Wahaha Group |
Headquarters | Hangzhou, China |
Area served | China |
Key people | Emmanuel Faber (Chairman) |
Products | Dairy products, Water, Soft drinks |
Revenue | €100 million |
5% | |
Parent | Groupe Danone, Hangzhou Wahaha Group |
Website | wahaha.com.cn |
The companies became partners in 1996 in a business model Forbes magazine hailed as a "showcase" joint venture.[2]
As the businesses expanded and became more complex, Danone made several attempts to buy out Wahaha, but was rebuffed.[3] Danone and Wahaha's general manager Zong Qinghou signed a deal in December 2006, allowing Danone to buy a majority stake in the non-JV operations. However, Zong had second thoughts about the deal and reneged,[4] claiming the offer was underpriced.[5] It is alleged that he wanted to squeeze a higher price out of Danone.[4]
In a trademark dispute, Danone filed for arbitration in Stockholm on 9 May 2007.[6] Danone took further legal action by filing a suit in Los Angeles Superior Court against Ever Maple Trading and Hangzhou Hongsheng Beverage Co Ltd on 4 June 2007,[7] companies controlled by Zong's wife and daughter.[8]
On 21 December 2007, Danone and the Chinese partner agreed to suspend their legal battle and resume negotiations.[9] In 2009, Danone Group exited the joint venture by selling their 51% stake to Wahaha Group for an estimated $500 million.[10]