Nestle Expands in China
Nestle has taken a 60% stake in Chinese food company Yinlu Foods Group for an undisclosed price. Family-owned Yinlu is a well established household brand in China and a significant marketer for ready-to-drink peanut milk and ready-to-eat canned rice porridge.
The deal builds on an already successful partnership between the two companies, as Yinlu is a co-manufacturer for ready-to-drink Nescafe coffee in China. Yinlu’s 2010 sales amounted to around SFr750m (Eur584m). Yinlu’s products are tailored to Chinese consumer taste and habits, and complement Nestle’s existing product portfolio in China, which includes culinary products, coffee, confectionery, bottled water, milk powder and products for the food service industry.
Nestle has been present in China for over twenty years and today operates 23 factories, two R&D Centres and employs 14,000 people. Nestle in the China region achieved sales of SFr2.8b in 2010. Main Nestle brands in China include Nescafé, Nan, Maggi, KitKat as well as local brands such as Haoji and Totole.
