Nestlé reported that it has gave the green light to sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co., Ltd. This deal will cover all Yinlu operations which include its five factories in Anhui, Hubei, Shandong, Fujian and Sichuan. Yinlu brands had sales of CHF 700 Million in 2019 as both parties have agreed not to disclose financial terms of the transaction. Food Wide Co., Ltd. Is strategically positioned to allow for a smooth transition that will ensure long term success of the acquired businesses.
This transaction will allow Nestlé to focus on its key categories in China which are confectionery, infant nutrition, coffee, culinary, petcare and dairy. This will allow for the company’s strong brands, digital capabilities and innovation engine to drive growth.
Nestlé will retain its ready to drink Nescafé coffee business and distribute products across majority of the Greater China Region. Nescafé is a high growth brand for Nestlé and will continue to be invested in to strengthen the brand across all channels in the market. One team will manage the Nescafé brand in China, by utilizing synergies and strengthening capabilities, the team will drive further growth in the business.
Yinlu plans to continue to manufacture and sell Nestea products under license from Nestlé.