Uncategorised

Nestle acquires Chinese peanut drink manufacturer

Posted by Rita Mu

Nestlé is set to become a major player in China’s ready snacks sector with the recent acquisition of a Chinese food company that manufactures peanut milk drinks and canned rice porridge.

Nestlé settled the acquisition of 60 per cent of Yinlu Foods Group’s operations yesterday.

The family-owned business is a co-manufacturer for ready-to-drink Nescafé coffee in China and a well-established household brand in China. The peanut drink manufacturer’s sales amounted to around CHF 750 million (~AU $789 million) last year.

According to Nestlé, the acquisition of Yinlu complements the company’s existing product portfolio in China, which includes culinary products, coffee, confectionery, bottled water, milk powder and products for the foodservice industry.

“[The partnership] demonstrates our long-term investment in China and our commitment to further developing local brands,” Nestlé Chief Executive Paul Bulcke said.

Nestlé has said it will not disclose the acquisition price.

Nestlé’s products and manufacturing facilities have resided in China for more than twenty years. Currently the food giant operates 23 factories, two research centres and employs 14,000 people in the country.

Image: 21food.com

Send this to a friend