Nestle to weigh US$1 billion sale of local Chinese brands Hsu Fu Chi and Yinlu
- The firm is reviewing its ownership of confectionery brand Hsu Fu Chi and Yinlu, known for its ready-made Chinese porridge, say people familiar with the matter
- Nestle acquired both in 2011, seeking to tap burgeoning demand in China, only to find itself confronted with sluggish growth a few years later
Nestle is weighing options including a sale for two ailing Chinese units after years of attempting to turn them around, people familiar with the matter said.
The food giant has been reviewing its ownership of Hsu Fu Chi, a local confectionery brand, and Yinlu, known for its ready-made Chinese porridge, according to the people.
It is seeking more than US$1 billion for its controlling stakes in the two companies, the people said, asking not to be identified because the information is private.
Nestle acquired both companies in 2011 as it sought to tap burgeoning demand in China, only to find itself confronted with sluggish growth a few years later.
Since becoming chief executive officer in 2017, Mark Schneider has been weeding out the Swiss company’s portfolio, jettisoning assets such as US chocolate brands, a dermatology business and a life insurance unit for about US$15 billion total.
