October 8, 2022
Yili-owned New Zealand's Westland Milk buys competitor Canary Foods
New Zealand's Westland Milk cooperative, owned by China's largest dairy company Inner Mongolia Yili Industrial Group (Yili), has purchased competitor Canary Foods for an undisclosed price, Just Food reported.
Richard Wyeth, CEO of Westland Milk, said Canary is a fantastic fit for their business because it is so obviously based on a strong understanding of what their customers want and need, adding that they greatly admire and uphold their commitment to innovation, sustainability, and quality in order to meet consumer demands.
The agreement with Westland Milk, according to James Gray, executive director of Canary Foods, would give the dairy manufacturer more opportunities for expansion and access to international markets.
Prior to the Yili acquisition, Westland Milk began a strategic review of the second-largest dairy cooperative in New Zealand in 2018. At the time, the company stated that due to its relatively high debt levels and limited financial flexibility, it was looking to increase shareholder value with new capital.
Wyeth said Westland continues to grow under the leadership of their parent company Yili. He also said they improved overall performance thanks to Yili's investment, and is now well-positioned to take advantage of that.
In its fiscal year 2021, Yili generated revenue of CNY 110.6 billion (~US$15.5 billion; CNY 1 = US$0.14) and a net profit of CNY 8.7 billion (~US$1.2 billion). Revenue increased 12.3% to CNY 63.4 billion (~US$8.9 billion) in the first half of 2022, while net profit increased by 15.2% to CNY 6.1 billion (~US$857 million).
- Just Food