China's leading fruit juice-maker Huiyuan has received over US$200 million in overseas investments, the Beijing-based company said yesterday.

Groupe Danone, Warburg Pincus, the Netherlands Development Finance Company (FMO) and Value Partners bought a combined 35 per cent stake in China Huiyuan Juice Holdings Co Ltd, a Cayman Islands-registered subsidiary of Beijing Huiyuan Beverage & Food Group Co Ltd (Huiyuan Group).

The French food and beverage giant Danone owns a 22.18 per cent share in China Huiyuan.

"Funds raised through the strategic investment will be used in building the company brand and sales channels, improving research and development, and expanding production capacity," said Zhu Xinli, chairman and president of Huiyuan Group.

But detailed plans have not yet been made, he said.

"Co-operating with these strategic investors will help strengthen our competitiveness and dominant position in the country's fruit juice market," said Zhu.

For overseas investors, Huiyuan and China's fruit juice market presents a good development opportunity.

Sources from the China Beverage Industry Association say the fruit juice market in China has been developing rapidly in recent years.

However, the per capita juice consumption is only less than 2 litres a year, much lower than the per capita consumption of over 40 litres in developed countries.

"Market demands for pure fruit juice and juice beverages are growing quickly," said Zhao Yali, secretary-general of the beverage association.

According to Zhao, consumption of fruit juice drinks account for around 20 per cent of the country's total beverage market, and the proportion is expected to continue rising.

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