Dairy giant Royal Friesland is considering a solution for its Friso Infant Nutrition business as an attempt to simplify its operations, Bloomberg reported today, citing a source in the know.
In response to the news from foreign media, Friesland China told Foodinc: “Recently, there have been media reports that Royal Friesland is evaluating Friso’s business. We do not comment on market rumors.”
“We would like to stress that the Friso brand and the infant nutrition business will not be sold.” Friesland China told Foodinc that Friso is the core business of Friesland’s professional nutrition business group, and Friesland will work with its partners to achieve long-term development in China.
Today, Foodinc learned from a source familiar with the milk powder industry that Friesland is a full-industry chain enterprise, and Friso’s infant formula brand is a small proportion of the company’s overall business, but it makes up the bulk of Friesland’s business in China.
The Chinese market is Friso’s biggest source of revenue. “Up to 90% of Friso’s global business is achieved in mainland China and Hong Kong,” according to the source.