Cathay Capital signs strategic partnership with Savencia Fromage and Dairy

Cathay Capital, a global investment platform, announced a strategic partnership with Savencia Fromage and Dairy, a French dairy and food product manufacturer, and has made an exclusive strategic investment in the latter's Chinese brand Baijifu on Friday, aiming to enhance its market presence and growth prospects in the Chinese market. 

Baijifu, owned by Savencia, now offers over 50 cheese and dairy products across multiple series globally.

"The trust between the two companies has led to this partnership. We will be stronger in growing our business in China," said Oliver Delamea, CEO of the Viroflay, France-headquartered Savencia Fromage and Dairy.

"Currently, the Chinese market for cheese is small, with the average Chinese consumer's annual cheese intake at about 180 grams, compared to 27 kilograms in France and 4 kilograms in Japan," said Delamea, predicting the consumption will increase in China. Savencia hopes to reinvent and innovate this market, bringing healthy, natural, local and sustainable dairy products to Chinese consumers.

Savencia emerged as a forerunner in the China's cheese market three decades ago. The company's local subsidiary, BSI, introduced a product line within the Chinese market, notably under the brand Baijifu, featuring a cheese snack specifically designed for children.

Having lived in France for 35 years, Cai Mingpo, founder and chairman of Cathay Capital, said this strategic investment is not only a testament to the company's trust and support for Baijifu but also a firm belief in the future potential of China's dairy market.

Leveraging its Sino-European industrial advantages and understanding of the local market, Cai said Cathay Capital will help Baijifu better adapt to the evolving needs of the Chinese market and actively promote product innovation and brand development, sales channel expansion and supply chain management for the French brand.

Demand for cheese is anticipated to grow swiftly in China as consumers come to regard it as a nutritious snack, according to a report by GlobalData, a London-based data and analytics company.

The value of the Chinese cheese market is expected to grow from a forecasted $1.06 billion in 2020 to $1.96 billion in 2025, a surge of nearly 85 percent, the study noted.

With this year marking the 60th anniversary of the establishment of diplomatic relations between China and France, Cai said that Cathay Capital has long-term confidence in the Chinese market. The company will continue to explore new opportunities in China.

Founded in 2006, Cathay Capital has over 6 billion euros ($6.5 billion) assets under management with over 230 buyouts and venture capital investments from offices in Paris, New York, Shanghai, Munich, San Francisco, Berlin, Beijing and Singapore.