US confectionery firm Hershey has announced the sale of Golden Monkey, a Shanghai-based confectionery brand, to Henan Yuxiang Food Technology for an undisclosed amount.
The move comes as volume sales of sugar confectionery have reportedly declined in China as consumers switch to healthier options.
Alongside confectionery, Golden Monkey also markets a tofu-based snacking brand called Munching Monkey.
Commenting on the news, Hershey spokesperson Jeff Beckman said: “We are constantly evaluating our business to improve efficiency and our long-term growth potential in China and globally. China is one of the most important markets for Hershey globally, and the company has been committed to the China market for more than 20 years. We have a long-term vision for China, and we are evolving our business with a clear strategy to drive sustainable, profitable growth in the future by resetting our business to respond to the changes in the market”.
Hershey took an 80% stake in Golden Monkey in 2014 and acquired the remainder over the following years. The total deal value including net debt was reported at the time to be in the region of $577 million.
Source: Caixin Global / Food Navigator Asia