Nestle said deal marked "commitment" to growing local brands

Nestle said deal marked "commitment" to growing local brands

Nestle has acquired a controlling stake in Chinese food and drink maker Yinlu Foods Group.

Nestle revealed this morning (18 April) that it has taken a 60% stake in the family-owned Chinese food group, which generated annual sales of CHF750m (US$837.2m) in 2010.The financial details of the transaction were not disclosed.

Yinlu co-manufactures Nestle's Nescafe ready-to-drink products for the Chinese market and the Swiss food giant said the deal built on that partnership.

Nestle added that the move demonstrated its commitment to developing health and wellness brands that are tailored to the preferences of local consumers.

Commenting on the deal, Nestle CEO Paul Bulcke said: "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 Nestlé's innovation and renovation capabilities."

The acquisition of Yinlu, which makes products including ready-to-drink peanut milk and ready-to-eat canned rice porridge, is subject to Chinese regulatory approval.