December 19, 2012

 
China's Bright Dairy to raise prices on high input costs

Bright Dairy & Food Co Ltd. will increase prices of their dairy products because of rising raw material costs.

"From December 18, prices on some fresh milk and yogurt products will be increased by 5% due to the rising cost of raw materials," Bright said in a statement filed to the Shanghai Stock Exchange on Monday (Dec 17).

Last month, the dairy giant announced its acquisition of Weetabix Ltd. Bright Dairy paid about GBP700 million (US$1.14 billion) for the deal, which gives them a 60% stake in Weetabix, the second-largest maker of breakfast cereals in the UK.

Last year, Shanghai-based Bright Dairy, one of the largest food companies in China, posted annual sales of CNY76.9 billion (US$12.3 billion) and CNY2.65 billion (US$425 million) of net profit.