Tingyi, a Chinese instant noodle producer, is planning to form a joint venture with Wakodo, the baby nutrition unit of Japanese beer maker Asahi, to sell infant milk formula in China in response to increasing consumer demand for quality products.
The move comes after Japanese confectioner Meiji has announced that it will come out of infant nutrition market in the country over increasing costs and competition.
Wakodo has inked an agreement in October to form the joint venture, which is awaiting approval from relevant authorities.
Tingyi will own a 45% stake in the venture, while the remainder will be owned by Wakodo.
The joint venture is expected to have a market capital of around $5m. It will not be involved in any manufacturing, reported Reuters.
Wakodo manufactures and sells food products. It operates in two segments: Food and Other Businesses.
The Food segment involves in the manufacture and sale of powdered milk for babies and commercial use; baby foods; and food products for vending machines and household use.
