As part of the continuing international development of Bega Cheese Limited (Bega), the company today
signed a supply and distribution agreement with one of China’s leading retail groups, Chongqing General
Trading Group (CGTG) whereby Bega will supply CGTG with Bega branded UHT milk produced in Australia
for distribution in China.
The agreement is expected to generate revenues of approximately $100 million dollars over five years.
Bega and CGTG see this as the basis for a broader commercial relationship in the future.
The Chongqing municipality in Southwest China is one of the fastest growing regions in China. It has a
population of 32 million people and GDP growth in 2013 of 12.3%. CGTG is the leading retail group in the
region, with a 50% retail market share across food and general merchandise.
On hand in Chongqing from Bega for the formal singing were Barry Irvin – Executive Chairman, Aidan
Coleman – CEO and Paul van Heerwaarden – General Manager Sales and Marketing.
Mr Coleman said that “the company is very pleased to form this partnership with CGTG and it is a strong
endorsement of the reputation of the quality of Bega product and the bio security of Australia as a dairy
producing nation. We see this as a first step in developing a comprehensive UHT offering in the future”.
Dr He, Chairman of CGTG, said his company was excited to partner with an iconic Australian company like
Bega Cheese.
“China’s consumption of milk and dairy products is increasing rapidly. CGTG is delighted to work with Bega
to satisfy that need”.
The signing of the Chongqing agreement represents an expansion of Bega Cheese’s products entering the
Chinese market. The company has had a presence in the Chinese market for over 14 years, the Bega brand
has been sold in China since 2000 and Bega Cheese through its wholly owned subsidiary Tatura Milk
Industries has been a major Australian exporter of high value milk powder, infant formula and cream
cheese to the Chinese market.
Executive Chairman Barry Irvin commented “we are very proud of our long term business relationships and
we look forward to a long term relationship with CGTG. We are confident our relationship will grow and
that CGTG’s many customers will be delighted with the excellent quality and range of Bega products they
are able to purchase.”
The companies were initially brought together by the Victorian Department of Environment and Primary
Industry, a great example of business and government working together. Mr Irvin and Mr Coleman
acknowledged the efforts of Minster Walsh, the Victorian Department of Environment and Primary Industry
and former Queensland Government Minister, Mr Craig Wallace in bringing together the two businesses.
September 19, 2014
For further information please contact:
Barry Irvin Executive Chairman Bega Cheese
02 6491 7720
ABOUT CGTG
• Located in South Western China, in the region of the 3 gorges dam
• Based in municipality of Chongqing
• Population of Chongqing 32m, CGTG have 50% market share in Chongqing
• CGTG serve a catchment of 400m people
• USD 10b revenue
• Chairman of CGTG, Dr He is a ranking member of the People’s Congress in Beijing
• China’s 5th largest retailer and the largest retailer in South Western China
• Member of top 500 Chinese enterprises
• First time CGTG have done a direct deal with an internationally based manufacturer
• Standalone offices to be opened in Beijing, Guangzhou and Shanghai to promote the milk on the East Coast
• CGTG have 100,000 employees