Nestlé a to sell Yinlu peanut milk and canned rice porridge businesses
Nestlé has announced that it has agreed to sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co., Ltd, so that the company can focus on areas like confectionery, dairy, coffee and infant nutrition.
The deal covers all of Yinlu's operations, including its five factories in Fujian, Anhui, Hubei, Shandong and Sichuan. Yinlu brands had sales of CHF 700 million in 2019. Both parties have agreed not to disclose the financial terms of the transaction.
According to Nestlé, Food Wise Co., Ltd., a company controlled by the family of Yinlu founder Chen Qingshui, is well-positioned to enable a smooth transition and ensure the long-term success of that business.
As part of the transaction, Nestlé will retain its ready-to-drink (RTD) Nescafé coffee business and distribute the products across most of the Greater China Region.
Yinlu will continue to manufacture the Nescafé RTD products for Nestlé and will distribute the products in several provinces. Yinlu will continue to manufacture and sell Nestea products under license from Nestlé.
The transaction is expected to close by the end of this year.