Wei Chuan Foods Corp (味全食品) is to terminate its four-year partnership with Calbee Inc in a bid to focus on its dairy and frozen goods businesses, the Central News Agency reported yesterday.
The split in the companies’ four-year partnership also comes as the leading Japanese snack food maker makes moves to fine tune its business strategy in Taiwan, the Chinese-language Economic Daily News reported on its Web site.
Wei Chuan and Calbee, which operates the well-known snack brand Jagabee, launched a joint venture — Calbee (Taipei) Foods Co Ltd (台北卡樂比食品) — in June 2012 and established production lines of its potato products in Douliu Township (斗六) in Yunlin County.
Wei Chuan, which holds a 49 percent stake in Calbee Taipei, had intended to grab up to a 35 percent share of the potato snack foods market in Taiwan to become the No. 1 brand in the market.
However, affected by the substandard cooking oil scandal of Wei Chuan’s biggest shareholder, Ting Hsin International Group (頂新集團), not only have consumers boycotted Wei Chuan’s dairy products, but also Jagabee’s products have also seen a drop in sales, the reports said.
Calbee started negotiations to end its cooperation with Wei Chuan late last year in view of the dwindling Jagabee sales in Taiwan, the reports said.
The Japanese company reportedly plans to end its partnership with Wei Chuan by liquidating Calbee Taipei instead of buying back its 49 percent share in the joint venture, the reports said.
However, since Calbee is still interested in the local market, the company might seek alternatives to sell its flagship products, while stopping mass production in Taiwan, according to the reports.
Shares of Wei Chuan fell 4.02 percent to close at NT$20.3 yesterday in Taipei trading. The stock has declined by 17.14 percent over the past 12 months, compared with the broader market’s 10.49 percent setback, Taiwan Stock Exchange data showed.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range