The new joint venture Joy Wing Mau Asia will come into effect in April, and will also absorb Joy Wing Mau’s Asian business.
Capespan has extended its market access into significant parts of Asia in recent years, mainly through its Hong Kong-based business Metspan, as well as Capespan Japan.
At the same time Joy Wing Mau – a merged entity between Joyvio and Golden Wing Mau, the latter partly owned by Capespan – claims it has become the single biggest distributor of fresh produce in the Asian region.
“Joy Wing Mau has enjoyed a long and successful partnership with Capespan,” Joy Wing Mau chairman Mau Wah Liu said in a release.
“It is an absolute natural fit for our businesses to pursue a wider cooperation within Asia by combining our infrastructures and experience towards greater access to markets for our suppliers and greater access to fruit for our market customers.”
“Both Capespan and Joy Wing Mau have a loyal and reliable supplier base as well as established market presence. Jointly, we can ensure that our suppliers and customers receive unparalleled solutions within the Asian markets.”
Capespan managing director Tonie Fuchs said the team at his company was very excited about the new initiative.
“They [Joy Wing Mau] are undisputed pioneers within the Asian region and we know that our joint services solution will present greater efficiencies, service levels and opportunities to our grower and market customers,” he said.
“We believe this is an innovative solution for Capespan and its suppliers in a high growth market with unique challenges and opportunities.”
Liu and Fuchs confirmed that “it will be business as usual” for both Capespan and Joy Wing Mau’s suppliers and customers.
Capespan entities based at source will continue to procure fruit from their suppliers for the Asian region, but the management of that fruit will be directly with Joy Wing Mau Asia, who will manage the customer service and distribution.
Where Joy Wing Mau Asia also has a presence at source, suppliers will have the choice of supplying Joy Wing Mau Asia directly or through Capespan, depending on their preferred supply models.
India and Bangladesh have been excluded from the joint venture because of Capespan’s existing formal relationships in these two countries. Capespan will continue to supply its customers in these unique market regions directly.
Capespan and Joy Wing Mau will jointly contact all stakeholders, suppliers and market customers to discuss the value proposition of this joint venture.