Nestlé and Yinlu partnership receives formal approval

Swiss food giant Nestlé has announced that its partnership agreement with Chinese food company Yinlu Foods has been formally approved, following the conclusion of the regulatory process.

On 18 April, Nestlé signed an agreement to acquire 60% stake in Yinlu, which produces ready-to-drink peanut milk and ready-to-eat canned rice porridge in China.

According to Nestlé, the partnership complements its existing portfolio of products in the country, which includes culinary products, coffee, confectionery, bottled water, milk powder and other products for the foodservice industry.

Nestlé CEO Paul Bulcke said that the company is proud to build this partnership to bring healthy, affordable and tasty products to its consumers in China by combining Yinlu’s entrepreneurship, product expertise and consumer understanding with Nestlé’s innovation and renovation capabilities.

Under the new partnership, Yinlu’s president Chen Qingyuan will continue to manage the company.

The Chinese company, which is also a co-manufacturer for ready-to-drink Nescafé coffee, posted sales of $817m in 2010.

Nestlé China, which reported sales of CHF2.8bn ($3.05bn) in 2010, operates 23 plants and owns brands such as Nescafé, Nan, Maggi, KitKat and local brands such as Haoji and Totole.