FDBusiness.com

Nestlé will double the number of research and development (R&D) units it has in China to further its understanding of Chinese consumers, ingredients and local cuisine, and provide scientific and technological expertise to the rest of the business in Asia and around the world. The two new R&D units in Xiamen and Dongguan will also support Nestlé’s joint ventures with Chinese food companies Yinlu and Hsu Fu Chi, as well as working on projects with its R&D centres in other countries.

The unit in Xiamen will specialise in ready-to-drink beverages and will support Yinlu, China’s leading producer of ready-to-drink peanut milk and ready-to-eat rice congee.

The unit in Dongguan will have expertise in baked products and will work closely with Hsu Fu Chi, the leader in affordable confectionery, biscuits, and traditional snacks in China.

“We continue to invest in our R&D capability in Asia, because we know this brings us closer to local consumers, and gives us a greater understanding of the raw materials used to make the products they enjoy,” says Johannes Baensch, Nestlé’s Global Head of Research and Development. “Wherever they are in the world, our regional R&D units are global centres of competency for certain technologies. They create proprietary knowledge and focus on growth opportunities for our business.

Nestlé’s investment in Xiamen and Dongguan reflects its long-term commitment to advance nutrition and food science in China. Together with Nestlé’s facilities in Shanghai and Beijing, the new R&D units in Xiamen and Dongguan will be part of the newly-named ‘R&D China’. R&D China will continue to build on Nestlé’s existing scientific collaborations with universities and research organisations in the country.

The company’s investment in China is the latest in a number it has made to increase its R&D capabilities recently. In June, Nestlé opened a Clinical Development Unit in Lausanne, Switzerland. In August, it announced an addition to its Product Technology Centre in Konolfingen, Switzerland, which focuses on the development of infant formula, dairy products and medical nutrition. In November, the company plans to inaugurate the Nestlé Institute of Health Sciences in Lausanne, as well as its new R&D Centre in Manesar, India.