Arc’teryx’s Backer Acquires a Time-Honored Sichuan Pickle Brand

Sichuan, one of China’s most important provinces for condiments and seasonings, may soon welcome its next listed company.

On January 20, a simplified antitrust filing published on the Chongqing Administration for Market Regulation’s website disclosed a major transaction involving FountainVest Capital. Its affiliated entity, FountainVest Capital Partners GP4 Ltd. (the “FountainVest GP4 entity”), will acquire control of Jixiangju Food Co., Ltd. through its indirectly wholly owned subsidiary, Chuanxiang Siyi (Shanghai) Food Co., Ltd. Under the equity purchase agreement, Chuanxiang Siyi will acquire a combined 92% stake in Jixiangju from its existing shareholders.

According to the filing, prior to the transaction, a single natural person held 31.24% of Jixiangju and exercised sole control. Following completion, FountainVest GP4 will indirectly hold 92% of the company’s equity, thereby gaining full control.

Founded in 2007, FountainVest Capital is a well-known private equity firm. Its four founding partners—Tang Kui, Hu Yongmin, Zhuang Jian, and Zhao Chenning—previously worked at Singapore’s sovereign wealth fund Temasek, giving the firm deep experience in cross-border investment and capital operations.

In the consumer sector, FountainVest’s most high-profile investment in recent years has been Amer Sports, the parent company of Arc’teryx. In 2018, Anta Sports teamed up with FountainVest Capital, Tencent, and Lululemon founder Chip Wilson to acquire Amer Sports for €4.6 billion (approximately RMB 36 billion at the time), marking the largest outbound acquisition by Chinese capital that year. Amer Sports successfully listed on the New York Stock Exchange in 2024, delivering substantial returns for FountainVest.

The latest acquisition target, Jixiangju, is one of China’s leading producers of pickled vegetables and preserved foods. Founded in 2000 in Meishan, Sichuan, the company operates several well-known brands, including the Jixiangju pickle line, the “Bao Xia Fan” ready-to-eat sauce range, the “Jiang Niu Bafang” beef sauce brand, and the “Chuanzhimei” compound seasoning series.

Media reports note that Jixiangju’s founder, Ding Wenjun, grew up in rural Meishan. In 2001, after witnessing unsold vegetables piling up in his hometown, he identified an opportunity in the pickle industry. Investing more than RMB 1.5 million of his own savings, he established Jixiangju and began industrializing local pickling traditions.

According to official local government sources, Jixiangju’s pickle sales exceeded RMB 800 million in 2018. People’s Daily reported that domestic sales reached RMB 1.3 billion in 2023. Data from offline retail monitoring agency Mashangying shows that in the first three quarters of 2025, Jixiangju ranked second in market share within China’s pickled-vegetable segment, trailing only Fuling Zhacai, which recorded revenue of RMB 1.999 billion over the same period.

Jixiangju has long shown ambition toward the capital markets. In October 2020, it signed an IPO tutoring agreement with Huaxing Securities, initially planning a listing on ChiNext. In February 2021, it switched its sponsor to Minsheng Securities. By 2023, the company had secured strategic investments from Sequoia Capital China, Tencent Investment, and the 517 Fund under Juewei Food.

With control now transferring to FountainVest Capital, Jixiangju is widely expected to accelerate its push toward a public listing.

Looking at the broader seasoning industry, Sichuan has already produced several listed companies, including Qianhe Condiment, Yihai International, and Teway Food—underscoring the province’s strength in this sector.

That said, the challenges facing Jixiangju are equally clear.

Its core pickled-vegetable business accounts for only about 10% of China’s overall condiment market, suggesting a relatively low growth ceiling. While Jixiangju ranks second in its segment, the gap with the market leader remains significant. Mashangying data shows that in 2024, Fuling Zhacai held a 15.98% market share, compared with Jixiangju’s 9.25%.

More importantly, as consumers increasingly prioritize healthier diets, the entire pickled-vegetable category has come under growth pressure. Data indicates that in the first three quarters of 2025, the segment’s overall market share continued to decline. Performance within the category has also diverged: the leading player has continued to gain share, while Jixiangju’s position has weakened.

In response, Jixiangju has rolled out reduced-sodium and additive-free products, as well as probiotic pickles marketed as having “no detectable nitrites,” in an effort to align with evolving consumer preferences. Ultimately, following FountainVest Capital’s entry, the key to breaking through existing constraints may lie in expanding market share while building new growth engines beyond its traditional core business.