Swire Foods, Mövenpick Foods establish new coffee JV in Hong Kong

Swire Foods Holdings, a subsidiary of Swire Pacific, has established a 60:40 joint venture (JV), Swire MP Foods, with Mövenpick Holding’s subsidiary Mövenpick Foods Licensing, to cater to the increasing demand for premium coffee in China.

Built on the strengths of the two owners, the JV will initially focus on roast and ground coffee, coffee beans, freeze instant dry coffee and 3-in-1 coffee.

It intends to market Mövenpick coffee in its Swiss recipe to retail and foodservice channels in Hong Kong and China in 2014.

Mövenpick will back the JV with its premium brand and long-term coffee expertise, while Swire will contribute its distribution capabilities and knowledge of the Chinese market.

Swire Foods managing director Max Lau will serve as managing director of Swire MP Foods.

Mövenpick has been seeking to strengthen its presence in Hong Kong and mainland China and with its premium coffee brand.

Swire Pacific’s Trading & Industrial Division executive director J B Rae-Smith said, "We are excited to be partnering with Mövenpick and this will be an excellent opportunity for us to leverage our distribution network and expertise in this vast market."

Mövenpick Holding CEO Guido Egli said, "Swire is our ideal partner. Our newly-founded joint venture has set ambitious growth targets for the Chinese coffee market."