Beijing: Global food and drink company Nestle has acquired the remaining 40% stake in Chinese confectionery company Hsu Fu Chi from the founding Hsu family, giving it full ownership of the brand as part of efforts to expand its footprint in the rapidly growing Chinese snack market.
The Swiss food giant, known for its KitKat and Milkybar brands, initially purchased a 60% stake in Hsu Fu Chi in 2011 for US$1.7bil.
Since then, it has provided technical and marketing support in areas such as recipe development, research and development (R&D) and quality control.
With the latest transaction, Nestle aims to further integrate Hsu Fu Chi’s operations into its broader China strategy.
“This move combines Hsu Fu Chi’s efficient operations and entrepreneurship with our proven innovation and renovation capabilities. It accelerates the development of the brand and further reinforces Nestle’s presence in China,” said Zhang Xiqiang, chief executive of Nestle Greater China. “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 said the acquisition will allow Hsu Fu Chi to gain “wider and easier access” to its global brand and product resources, supporting its growth agenda.
At the same time, Nestle plans to leverage Hsu Fu Chi’s extensive distribution network to expand its snacking and confectionery business across China.
Founded in 1992 and based in Dongguan, Guangdong province, Hsu Fu Chi has grown into one of the country’s leading confectionery brands. — China Daily/ANN
