Foodservice
Nestlé to divest peanut milk, canned rice porridge business in China, will keep Nescafé
November 30, 2020
Nestlé has agreed to sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co., Ltd. for an undisclosed sum, according to a press release. The deal covers all of Yinlu's operations, including its five factories in Fujian, Anhui, Hubei, Shandong and Sichuan.
The transaction allows Nestlé to focus on key categories in China: infant nutrition, confectionery, coffee, culinary, dairy and pet care.
As part of the transaction, Nestlé will retain its ready-to-drink Nescafé coffee business and distribute the products across most of the Greater China Region. The entire Nescafé business in China will be managed by one team.
Yinlu will continue to manufacture and distribute the Nescafé RTD products for Nestlé in China and will also continue to manufacture and sell Nestea products under license from Nestlé.
