Multinational food and drinks giant Nestle has announced the sale of its Yinlu peanut milk and canned rice porridge business in China to Food Wise, a company linked to the family of the Yinlu founder, for an undisclosed sum.
The move will allow Nestle to focus on its key categories in China such as coffee, confectionery, infant nutrition, culinary, dairy, and petcare, the company said
As part of the deal, Nestle will retain Nescafe ready-to-drink (RTD) coffee business and distribution across the Greater China Region. The firm said Nescafe was a strategic growth driver, and that it would contine to invest to further strengthen the brand across all channels. In addition, Yinlu will continue to manufacture Nescafe RTD products for Nestle and will distribute them in several provinces.
The Greater China region is the second largest Nestle market globally with sales of about 7 billion CHF ($7.673 million) in 2019.