Trustar buys China condiments supplier
Trustar Capital, formerly known as CITIC Capital Partners, has acquired China-based food condiments supplier Beijing Salion Foods for an undisclosed sum.
The investment comes from the firm’s fourth China buyout fund, which closed in 2019 with commitments of USD 2.8bn. Salion represents Trustar’s 11th deal in the food and beverage space. Similar assets include Amoy Food, a Hong Kong-based manufacturer of cooking sauces that was carved out from Japan’s Ajinomoto in 2018.
Founded in 2000, Salion develops compound condiments and basic food ingredients. It offers nearly 1,000 stock-keeping units covering hundreds of ingredients, Chinese and Western flavour sauces, hotpot soup base and dipping sauce, and powder seasonings.
The company’s products are used by leading domestic foodservice operators and food brands, and by customers in more than 30 countries, according to a statement.
Deloitte calculated that China’s compound condiment market was worth CNY 150bn (USD 23.6bn) in 2020. It is expected to see compound annual growth of 10-15% over an unspecified period, driven by the industrialisation of China’s food industry, the development of franchised restaurant chains, and emerging demand for ready-to-cook and ready-to-eat products.
“The investment in Salion demonstrates our commitment to the stable and growing Chinese food and beverage industry. With strong industry trends of standardisation and industrialisation, we see systematic opportunities to find and build great platforms over the next several years,” said Derek Wang, a senior managing director at Trustar.
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