Smithfield Foods to open marketplace on JD.com

The deal will see JD.com's JD Fresh food division take the lead against Alibaba, China’s number one sales site, in terms of produce in a fiercely competitive market, Smithfield’s parent, WH Group, said.

Both Alibaba and JD.com have been investing heavily in smaller firms that specialise in manufacturing and processing fresh food products, while attracting more food storefronts to diversify their offerings.

WH Group will still work alongside Alibaba, however, by selling pork through Tmall, the market leader’s online consumer marketplace.

“We don’t have a clear sales target for Smithfield pork sold on JD.com yet, but it won’t be a significant volume​,” Luis Chein, a director at WH Group, said, adding that the Virginia-based pork supplier will sell around a dozen of its products on JD.com.

Smithfield will also cooperate on data, cold-chain logistics and food traceability. Its products will include bone-in cuts and variety meats, with a focus on small-packaged frozen products.

“These are all products which Smithfield specialises in, and include the types of products in highest demand in China​,” the company said in a statement.

Richard Liu, chairman and chief executive officer of JD.com, said the partnership would provide easy access to high-quality pork products for more Chinese families.

“When it comes to food, and particularly a major staple of Chinese households like pork, this is even more critical​,” he said.

WH Group acquired Smithfield in 2013 for US$4.7bn as it set out to build a portfolio of overseas assets to supply domestic consumers that had become increasingly concerned about the safety of home-produced foods.

“Through this partnership, Smithfield Foods will take yet another step in developing its e-commerce business and expand its presence in China, as we meet consumers where they shop​,” said Kenneth Sullivan, president and chief executive of Smithfield.

More from China…​

Givaudan embarks on its biggest ever investment in China fragrances​

Givaudan today laid the foundation for a new production hub in Jiangsu province as part of its continued investment in China’s high-growth market. ​

Located in Changzhou, one of the country’s most economically developed areas, the new  site will substantially increase Givaudan’s manufacturing capacity to supply customers across Northeast Asia. With a total investment of approximately CHF100m (US$102m), it is Givaudan’s biggest investment in China to date. 

Chief executive Gilles Andrier said the plant was “another significant milestone​” in achieving its 2020 strategy ambitions. 

The 76,000 square-metre hub will incorporate highly automated technology for fragrance manufacturing when it begins operations in 2020. 

“The new fragrance production hub will cover all the key product forms such as fragrances, oral care flavours, and encapsulation in the same location​,” said Maurizio Volpi, president of Givaudan’s Fragrance Division. 

“After our major investment in Singapore, we continue our expansion in Asia by laying the foundation of this very large facility in China, which demonstrates our long term commitment in the region. It will support us in continuing to build on the strong partnerships that we have with our customers in the country​.” 

Three products seized in Beijing after failing spot checks​

Samples of three food products have failed the latest spot checks on food safety conducted by the China Food and Drug Administration.​

A cheese product distributed by a Shanghai-based company was suspended for containing yeast at a level 6.8 times higher than the national standard of 50 CFU/g.

The high reading might have come from the contamination of raw materials during processing, or the contamination of products due to the lack of control over storing and transport conditions, the CFDA said.

The other two failed products were a fermented bean curd from central China's Hunan province and a tofu product from the southwestern city of Zunyi, both of which tested positive for coliform bacteria.

A total of 493 samples form six food categories underwent spot checks, with the three failed products ordered to be removed from shelves or recalled.

According to a recent guideline jointly issued by the Ministry of Commerce and nine other central government departments, China is looking to complete its product quality traceability system by 2020, which targets key products including food, medicine, special equipment, dangerous materials and rare earth.

The system will provide information regarding sources, destinations and accountable persons to reinforce product quality and safety, the guideline said.