Nestle in discussions to bring "good food and good life" to China

News has broken about preliminary discussions between Nestle SA, which bills itself as the global leader in nutrition, health and wellness, and Hsu Fu Chi International, the Guangdong-based manufacturer of confectionary products.

Nestle is a little coy about exactly where proceedings are at this stage, and has refused to provide any comment. Hsu Fu Chi however has made statements referring to the dialogue as being ongoing, preliminary and an advancement of previous partnership discussions it had held with Nestle, whilst also saying that talks are still ongoing with other suitors as well.

It's very easy to understand the attraction of Hsu Fu to potential suitors. It is China's biggest confectioner by market value and China has an economy and population that is growing in absolute terms as well as in its demand for goods ranging from food to luxury designer items.

According to Nestle's website, the company's mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. Its brands range from baby foods, to bottled water, to chocolate and confectionary through to Petcare and weight management to name just a few.

Thus it would appear it has the perfect portfolio of brands and products to potentially offer to China's 1.4 billion consumers and all of their spending power.
 

Filed under: food, Nestle, China