Unilever Acquires Soy Sauce Business in China

Unilever China is establishing a culinary products business in China with the acquisition of the Shanghai Huanan Laocai Food Industrial Co. Ltd., the leading soy sauce producer in Shanghai.

The assets of Huanan Laocai company have been purchased by a new enterprise, within Unilever China, which will be called Unilever Foods (Shanghai) Company Limited.

The Huanan Laocai company is well known for its "Lao Cai" brand of soy sauce, the most widely distributed soy sauce brand in the Greater Shanghai region. Lao Cai can be found in more than 80% of supermarkets and major foods stores.

Although the business is small at present, the Lao Cai brand is very strong in Shanghai and gives Unilever a solid base from which to build. The Chinese consume over 2.5 million tons of soy sauce every year and the total culinary market in China is worth at least $3 billion.