Kerry Logistics expands food cold chain business in China

Launches Kerry Cold Chain, a JV with Shanghai Zhizhen Logistics, to tap into the country’s fast-growing domestic market for niche food products.

Kerry Logistics Network Limited has expanded its food-related cold-chain capability in mainland China through the establishment of Kerry Cold Chain Solution Ltd, to tap into the fast-growing domestic market of niche food products.

Kerry Cold Chain is a joint venture company formed with Shanghai Zhizhen Logistics in which Kerry Logistics holds the majority interest. It provides comprehensive integrated cold chain logistics solutions “from upstream to downstream”, using self-owned cold-chain facilities and partnering with local expertise to handle a wide range of food products, from raw ingredients to dairy product additives.

Edwardo Erni, managing director for China and North Asia at Kerry Logistics, said: “The market for food-related cold-chain logistics in mainland China is immense, with enormous growth potential. There is also ample room for technological growth to reach international standards.

“Intending to fill a gap in the market, we welcome the collaboration with Zhizhen Logistics, which marks an important strategic step for Kerry Logistics to extend its footprint in the domestic cold chain logistics market, enhancing our service offerings and competitiveness.”

Kerry Cold Chain currently operates more than 1 million sq ft (90,000 sqm) of ambient and cold chain facilities in China, including a temperature-controlled facility of over 4,000 sqm in Shanghai featuring automated storage and retrieval systems.

Founded in 2008, Zhizhen Logistics serves the logistics needs of both domestic and international customers from locations across China including Beijing, Tianjin, Wuhan, Guangzhou, and Shenzhen. It commands a 90% market share for imported food essences in the Shanghai region, Kerry said.

Kerry Logistics already offers food and beverage solutions “with complete cold chain integrity” to food chain stores and restaurants in Hong Kong as well as hypermarkets and frozen food retailers in Taiwan. The group also runs cold chain facilities of more than 6,000 sqm in Oceania, serving supermarket chains, convenience stores, independent retailers, and food importers.

Source: Lloyd’s