Nestlé to sell Yinlu peanut milk and canned rice porridge businesses in China
Nestlé has signed a deal to divest its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise for an undisclosed price.
The deal includes all the operations of Yinlu, which includes five factories across Fujian, Anhui, Sichuan, Hubei, and Shandong. It is expected to be wrapped up by the end of this year.
Yinlu brands earned CHF 700 million in sales in 2019.
The buyer, Food Wise is controlled by the family of Yinlu founder Chen Qingshui.
Nestlé said that the deal enables it to concentrate on key categories in China, which are infant nutrition, confectionery, culinary, coffee, dairy, and petcare.
As part of the deal, the Swiss food and beverage giant will retain its ready-to-drink Nescafé coffee business.
Yinlu will continue to manufacture the ready-to-drink products under the Nescafé brand for Nestlé and will distribute the products in various provinces.
Besides, Yinlu will continue to manufacture and sell products under the Nestea brand as licensed from Nestlé.
The Swiss food and beverage giant stated: “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.”