Fashion
Nestle has acquired the remaining 40 per cent ownership in Chinese confectionery company Hsu Fu Chi for an undisclosed sum, after purchasing 60 per cent in 2011.
Hsu Fu Chi, founded in 1992 by the Hsu family, is a well-known confectionery brand in China. Nestle acquired its original stake for $1.7 billion.
The acquisition reportedly leverages Hsu Fu Chi’s distribution network to expand Nestle’s snacking and confectionery operations in China.
“This move combines Hsu Fu Chi’s efficient operations and entrepreneurship with our proven innovation and renovation capabilities, accelerates the development of the Hsu Fu Chi brand and further reinforces Nestle’s presence in China,” said Nestle Greater China region CEO Zhang Xiqiang in a statement sent to Just Food.
“It also demonstrates our long-term commitment to China and enhances our ability to grow our portfolio of international and local brands in this dynamic market.”
Nestle announced its action plan last year, which included targeted investments in important categories as well as incremental cost savings of at least US$2.83 billion.
