In September 2003, SEAF Sichuan SME Investment Fund (SSIF) provided BangBangWa, a Chinese beef snack producer and distributor, with working capital to boost production. As a result of SEAF’s investment, BangBangWa grew rapidly and attracted new retail customers, opening contracts with Walmart, Carrefour, Ito Yokato, major Chinese airports, and other large retail chains. Bangbangwa now occupies a 40% market shares of beef snacks in the Sichuan province and a 12% market share nationwide.
Sourcing From Local Farmers
BangBangWa produces beef snacks in modern packaging in China. The company sources its ingredients primarily from local farmers in the Sichuan province, providing these producers with a reliable alternative to local markets where sales are made at much lower prices. In addition, BangBangWa serves as a bridge between local farmers and national consumers, connecting small-scale producers to a market that otherwise would likely be inaccessible.
A Positive Impact
SEAF’s financial and technical assistance allowed BangBangWa to expand rapidly. In the first three years following SEAF’s investment, the company’s sales nearly quadrupled. In addition, the company grew from 48 full-time employees in 2002 to 440 full-time employees in 2008. Over the same time frame, the company expanded from selling their products in 200 stores to nearly 3,200 stores. SEAF’s investment in BangBangWa also resulted in the improved working and sanitary conditions, thereby guaranteeing higher quality control and production efficiency while having a positive impact on the working environment for employees. In August 2010, SSIF made a partial exit from BangBangWa.