:. Food Industry News


Chinese Noodle King Sees Sales Beating GDP Rate

Source: Reuters
13/11/2007

Hong Kong, Nov. 13 - Tingyi (Cayman Islands) Holding Corp, China's top instant noodle maker, aims to grow its turnover at double the rate of China's economic growth, despite rising raw material prices and foreign competition.

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"If China's GDP grows 11 percent, then we should grow 22 percent-- that's our aggressive strategy" Chief Financial Officer Frank Lin told Reuters in an interview on Tuesday.

"The multinationals like Coca-Cola are strong, but we're Chinese. We have the language, the culture, and we understand the flavours of China," he said. "In the end, it all comes down to flavour."

China's gross domestic product (GDP) will top 11 percent for 2007, its central bank said in a report last week.

On Monday, Tingyi -- which sells instant noodles, beverages, bottled water, tea, and crackers under the "Master Kong" brand name -- posted a 26.1 percent rise in third-quarter net profit to US$76.5 million.

The company, which competes with Coca-Cola and China's Wahaha, a partner of France's Danone, controls 46 percent of China's instant noodle market, and 51 percent of its ready-to-drink tea market, making it the leader in both categories.

"We will maintain our leading positions in 2008," Lin said.

Shares in Tingyi were down 0.36 percent by 0333 GMT on Tuesday, while the index of mainland Chinese firms listed in Hong Kong had lost 1.79 percent.



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