CHINA September 2019
 
Danish firm wins Pizza Hut pepperoni contract in China
 
Denmark-based Danish Crown Group’s Tulip Food Company has won a massive food service contract in China.
Tulip Food Company and the Pizza Hut chain in China have signed an agreement for the supply of approximately 500 tonnes of pepperoni per annum - the equivalent of about 160 million slices of pepperoni, which will be used to top more than 6 million pizzas.
Tulip’s relationship with Pizza Hut in Asia began 3 years ago when its Svenstrup factory was registered and approved for export.
Senior Export Manager Niels W. Thomsen said, “It is with our arms over our heads that we can now tell that from August, we have 100% of the pepperoni business for Yum! Brands' many Pizza Hut stores in China. We are sitting on the whole pepperoni business for Hong Kong, and it is only a year ago that we got an agreement in place about 50% of the deliveries to Pizza Hut in China. So we had no idea at all that after 8 months of shipping, we would end up with the whole business.”
Tulip's International Sales Director Mike Sauerberg said that this deal will also act as an endorsement for the brand. “In addition to the good taste, food security and delivery ability are highlighted as some of the most important parameters in choosing Tulip's pepperoni. Besides Pizza Hut, its owner Yum China Holdings also owns other restaurant chains like KFC, Taco Bell and Little Sheep - and Tulip seeks to expand the sales of its products to these food chains.
For Tulip, being able to tell its other potential partners that it has been selected as the sole supplier to one of the largest pizza chains in the world after an 8-month trial period, is a quality stamp that testifies to good quality, service and competitive price.
In fact, this agreement has also acted as a catalyst for another pizza player, the Domino's chain in China, to choose to test Tulip’s pepperoni after many long efforts.
Apart from selling pepperoni to Pizza Hut, Tulip has also started exporting mortadella and other sausages from Svenstrup to retail outlets in China.
 
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