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Wahaha, China's largest beverage producer, is to speed up its overseas expansion in Southeast Asia and Europe.

The Hangzhou-based company is looking for partners to expand its sales network in Southeast Asia. It is also considering opening a factory in Poland.

"I think it is now timely for Wahaha to speed up the pace of going global," said Zong Qinghou, Wahaha's chairman.

Zong made the remarks on the sidelines of the Fourth Overseas Chinese Worldwide Forum on Tuesday. The two-day forum was organized by the Overseas Chinese Affairs Office of the State Council.

Zong told China Daily that he is looking for a partner that has a "mature and extensive sales network in Southeast Asia."

Chia Tai Group, a multinational conglomerate based in Thailand, could be a possible partner, Zong said.

"Chia Tai Group runs more than 3,000 7-Eleven stores in Thailand. That would be a precious resource for us," said the 61-year-old beverage tycoon from East China's Zhejiang Province.

A response from Chia Tai was not immediately available.

Wahaha's expansion in Southeast Asia began in 2004 when it opened a factory in Indonesia with its French partner Groupe Danone SA. Danone controls 70 percent of the factory while Wahaha holds the rest of the stake. The factory produces Wahaha's milk-based drink for children and Danone products such as yoghurt and biscuits.

Zong said earlier that the factory in Indonesia would produce Wahaha's own cola product in the near future. The company started making its cola drink, Future Cola, in 1998 and the product accounts for about 11 percent of China's carbonated soft drink market.

Danone invested US$43 million in five Wahaha factories in 1996. The French company owns 51 percent of each of the subsidiaries and Wahaha has the remainder.

By the end of last year Danone had a stake in more than 30 Wahaha factories, which account for nearly one-third of Wahaha's total 80 subsidiaries. Danone acts as a shareholder and is not involved in the management of Wahaha.

Wahaha is also considering opening a factory in Poland to make its products more competitive in Europe, Zong said. But he declined to disclose any further details of the firm's European expansion plans.

A small amount of Wahaha's products have been exported to some European countries. "But obviously our brand has not been widely recognized in Europe," Zong said.

As China's beverage industry leader, Wahaha currently produces 60 kinds of products, including bottled mineral water, milk-based drinks and carbonated soft drinks.

(China Daily June 22, 2006)