Nestlé has acquired the remaining 40% stake in Chinese confectionery business Hsu Fu Chi from the founding Hsu family for an undisclosed sum.
The Switzerland-based KitKat manufacturer bought a 60% stake in Hsu Fu Chi, a well-known confectionery brand in China, in 2011 for $1.7bn and has since provided technical and marketing support for recipes, R&D and quality control for the company’s products.
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In a statement sent to Just Food confirming that it has now taken total control of the business, Nestlé said the transaction will “enable wider and easier access to Nestlé global brand and product resources for Hsu Fu Chi to achieve its growth agenda”.
It added that Nestlé would also be able to take advantage of Hsu Fu Chi’s distribution network to grow its snacking and confectionery business in China.
Nestlé Greater China region CEO Zhang Xiqiang said: “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 Nestlé’s presence in 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.”
Originally founded in 1992 by the Hsu family from Taiwan, the Chinese confectioner has a production base in Dongguan in southern Guangdong province.
Nestlé, the world’s largest food company, has been present in China for nearly 40 years and today operates 23 factories, five product innovation centres and three R&D centres. It employs more than 21,000 employees in the country.
Reporting its 2024 financial results in February, Nestlé revealed revenues from its China operations amounted to Sfr4.97bn ($5.51bn).
