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Chinese investor ploughs £2.2 million into tonic company
New Zealand tonic company East Imperial has welcomed a significant investment from China’s second largest distributor to help the company expand in the Far East and America.
Shareholders of the New Zealand ultra-premium mixers group East Imperial have given the board a vote of confidence by approving a deal that gives the company extra working capital to expand its markets in both the Far East and America.
The group’s Chinese strategic investor and partner, Wen Hua International (WHI), which distributes the company’s products in Macau and mainland China, is injecting £2.2 million by taking convertible loan notes.
East Imperial first signed a distribution agreement with WHI, which is the second largest distributor in China, in August 2022.
“East Imperial’s founder and chief executive Tony Burt said: “Having this vote of confidence from the shareholders and funding secured from a strategic cornerstone like Wen Hua International gives the entire team tremendous confidence to continue to execute our strategy and carve out our niche.
“There is little doubt that we have a unique opportunity ahead of us and some exciting initiatives to roll out. I’m confident we will deliver significant progress for the second half of this year and beyond.”
“We will use the funds raised to accelerate our growth in the strategically important US market and explore further opportunities using WHI’s reach in Asian markets.”
The new working capital will enable East Imperial to further expand demand for its ultra-premium mixers, especially in the US market, where it has been enjoying strong growth based on its focus on ultra-deluxe on-trade outlets.
East Imperial will also be able to improve margins as the key bottling deal with Lion Brewery in Pennsylvania comes on stream.
In December 2022, the mixers company penned a deal withSUTL Group to handle its products exclusively in Vietnam, a market where East Imperial sees “enormous potential”.
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