Food conglomerate, Nestle has reached a deal to take over the remaining 40% stake in Hsu Fu Chi, a renown confectionery brand in China.
Nestle aims to leverage on Hsu Fu Chi’s strong distribution network to enhance its presence in China’s snack and confectionery sector, without revealing the size of the deal. At the same time, Hsu Fu Chi will also enjoy technical and marketing support from Nestle for its R&D activities.
Nestle acquired a 60% stake in Hsu Fu Chi International in 2011 for US$1.7 billion, and since then has been expanding its snack and sweet portfolio for local consumers.
Originally founded in 1992 by the Hsu family from Taiwan, the Chinese company has a production base in Dongguan, southern Guangdong province.
CEO of Nestle China Zhang Xiqiang said the acquisition will further accelerate the growth of the Hsu Fu Chi brand and will also enhance Nestle’s market performance in China.
This new investment also signifies Nestle’s long-term commitment in China, and will also strengthen its capabilities to develop both local and international brands in the market. Presently, confectionery sales contributes 16.1% of Nestle’s Rmb 40.3 billion (US$5.53 billion) sales in China in 2024.
Nestle has 23 factories, 5 innovation centres and 3 R&D centres in China, employing more than 21,000 people in the country
