Danish Crown and Chinese Alibaba’s Win-Chain on 6 November signed an agreement on weekly deliveries of 250 tonnes of Danish pork from Danish Crown’s new factory in China.
The deliveries will start during summer 2019 and continue for five years. The agreement is worth at least 300 million euro (2,3 billion DKK), according to Danish Crown.
“It is fantastic for Danish Crown to land such a big contract with Win-Chain and the Alibaba Group. At one fell swoop, our products will be made available on Win-Chain’s digital platforms and also in the Alibaba-owned supermarket chains throughout the Shanghai region,” says Jais Valeur, Group CEO in Danish Crown.
Danish Crown has been cooperating closely with the Alibaba Group since the two companies signed an agreement in August 2017 on the sales and marketing of Danish Crown products on Alibaba’s Tmall, the largest business to consumer platform for international and Chinese brands and retailers.
In the spring, Danish Crown broke the ground for the group’s first processing facility in China. The 17,000-square-metre new facility will be sited less than 100 km from Shanghai. It has been designed to produce 14,000 tonnes of processed products a year.
Danish Crown was established in 1887 and today it is the world’s largest pork exporter and Europe’s largest pork processor.
Alibaba Group was established in 1999 in Hangzhou, China. The company provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services.