Vevey, November 25, 2020
Nestlé agrees to sell Yinlu peanut milk and canned rice porridge stores to Food Wise Co., Ltd. for sale.
Nestlé announced today that it has agreed to sell its Yinlu peanut milk and canned rice porridge business in China to Food Wise Co., Ltd. for sale. The deal covers all of Yinlu’s operations, including its five factories in Fujian, Anhui, Hubei, Shandong and Sichuan. The Yinlu brands achieved sales of CHF 700 million in 2019. Both parties have agreed not to disclose the financial terms of the transaction.
Food Wise Co., Ltd., a company controlled by the family of Yinlu founder Chen Qingshui, is well positioned to facilitate a smooth transition and ensure the long-term success of this business.
The transaction allows Nestlé to focus on key categories in China: infant nutrition, confectionery, coffee, culinary, dairy and pet care, leveraging the company’s strong brands, digital capabilities and innovation engine to drive growth.
As part of the transaction, Nestlé will keep its Ready to Drink (RTD) Nescafé Coffee business and distribute the products across most of the Greater China region. Nescafé is a strategic growth driver for Nestlé and the company continues to invest to further strengthen the brand across all channels in the market. The whole Nescafé The business in China is managed by a team that leverages synergies and empowers the skills to drive the continued growth of the business.
Yinlu will continue to make that Nescafé RTD products for Nestlé and will distribute the products in several provinces. Yinlu will continue to manufacture and sell Nestea Products under license from Nestlé.
Nestlé is fully committed to the Greater China region, which offers significant growth opportunities. The Greater China region is the second largest Nestlé market worldwide with sales of almost CHF 7 billion in 2019. Nestlé has invested around CHF 800 million there over the past five years.
The transaction is expected to close by the end of this year.
Contacts:
Media:
Christoph Meier Tel .: +41 21 924 2200
[email protected]
Nancy He Tel .: +86 10 8434 7656
[email protected]
Investors:
Luca Borlini Tel .: +41 21 924 3509
[email protected]
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