Wahaha Joint Venture Company
The Wahaha Mikado Joint Venture Company is a food and beverage joint venture company established between the Hangzhou Wahaha Group, the largest beverage producer in China, and Danone, one of the world's largest food conglomerates.
The companies have been partners since 1996 in a business model Forbes magazine hailed as a "showcase" joint venture.
As the businesses expanded and became more complex, Danone had made several attempts to buy out Wahaha, but was rebuffed. Danone and Wahaha's General Manager Zong Qinghou signed a deal in December 2006, allowing Danone to buy a majority stake in the non-JV operations. However, Zong had second thoughts about the deal and reneged, claiming the offer was underpriced. It is alleged that he wanted to squeeze a higher price out of Danone.
For a trademark dispute, Danone filed for arbitration in Stockholm on 9 May. On 4 June, Danone filed suit in Los Angeles Superior Court against Ever Maple Trading and Hangzhou Hongsheng Beverage Co Ltd, companies controlled by Zong's wife and daughter who run the two companies.
On 21 December 2007, Danone and the Chinese partner agreed to suspend their legal battle and resume negotiations.
Read more about Wahaha Joint Venture Company: Background, Beginning of Public Row, Timeline
Famous quotes containing the words joint, venture and/or company:
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—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“He has no venture in the present.”
—Henry David Thoreau (1817–1862)
“All I can tell you with certainty is that I, for one, have no self, and that I am unwilling or unable to perpetrate upon myself the joke of a self.... What I have instead is a variety of impersonations I can do, and not only of myself—a troupe of players that I have internalised, a permanent company of actors that I can call upon when a self is required.... I am a theater and nothing more than a theater.”
—Philip Roth (b. 1933)