VEVEY, SWITZERLAND — Nestle has agreed to take a 60% stake in Yinlu Foods Group, a Chinese food company that produces ready-to-drink peanut milk and canned rice porridge.
“We will submit this partnership proposal to the Chinese authorities shortly,” said Paul Bulcke, Nestle chief executive officer. “It demonstrates our long-term investment in China and our commitment to further developing local brands. We are proud to build this partnership to bring healthy, affordable and tasty products to our consumers in China by combining Yinlu’s entrepreneurship, product expertise and consumer understanding with Nestle’s innovation and renovation capabilities.”
The agreement expands a partnership that is already in place between the companies as Yinlu is a co-manufacturer for ready-to-drink Nescafe coffee in China. The transaction is subject to regulatory approval in China, and the price is not being disclosed.
“This partnership represents a very important landmark in Yinlu’s long-standing aspiration to be a relevant and favorite brand for our consumers,” said Chen Qingyuan, chairman of Yinlu. “Nestle’s proven expertise will undoubtedly provide solid support for Yinlu’s continued growth. Together we will continue to develop our brand and manufacturing capabilities, in particular in the central and western part of China.”
In 2010, Yinlu had sales of approximately CHF 750 million ($835.1 million).