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Danish Crown switch milliardaftale in China

Slagterikoncernen Danish Crown has interrupted a cooperation with the chinese Winchain, which is owned by the giant Alibaba.

this was stated by The Danish Crown in a message.

When the agreement was concluded in 2018, it said that the Winchain would need to buy 250 tons of pork a week. This would ensure the Danish Crown 2.3 billion dollars over five years.

But Winchain have not bought as much pork as agreed. Therefore, stopping the cooperation.

- Winchain is challenged financially, so even though we had a totally clear contract, it did not make sense to continue the cooperation, says Søren Tinggaard, director of retail and foodservice in China, in a press release.

the Agreement was that the Winchain is expected to slow down al the meat from Danish Crown's factory in the vicinity of Shanghai, and now Danish Crown to sell to a broader range of customers in China.

- It is not uncommon with the bumps on the road, as what we are experiencing now, when you go into a new market.

- Now it's all about targeted marketing, delivery and constant high quality, so that we may have created a strong customer base, says Søren Tinggaard.

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