Nestle SA Nestlé announcement re. Yinlu (4440G)
25 November 2020 - 6:00PM
UK Regulatory
TIDM76TQ
RNS Number : 4440G
Nestle SA
25 November 2020
Nestlé Press Release
Vevey/Switzerland, November 25, 2020
Nestlé agrees to sell Yinlu peanut milk and canned rice porridge
businesses to Food Wise Co., Ltd.
Nestlé today announced that it has agreed to sell its Yinlu
peanut milk and canned rice porridge businesses in China to Food
Wise Co., Ltd. The deal covers all of Yinlu's operations, including
its five factories in Fujian, Anhui, Hubei, Shandong and Sichuan.
Yinlu brands had 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 enable a smooth
transition and ensure the long-term success of that business.
The transaction allows Nestlé to focus on key categories in
China: infant nutrition, confectionery, coffee, culinary, dairy and
petcare, capitalizing on the company's strong brands, digital
capabilities and innovation engine to drive growth.
As part of the transaction, Nestlé will retain 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 entire Nescafé business in China will be managed by one
team, using synergies and strengthening capabilities that will help
drive further growth in the business.
Yinlu will continue to manufacture the 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 globally with sales of nearly
CHF 7 billion in 2019. Nestlé has invested about CHF 800 million
there during the last five years.
The transaction is expected to close by the end of this
year.
Contacts
Media
Christoph Meier
Tel.: +41 21 924 2200
mediarelations@nestle.com
Nancy He
Tel.: +86 10 8434 7656
nancy.he@cn.nestle.com
Investors
Luca Borlini
Tel.: +41 21 924 3509
ir@nestle.com
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