Nestle, the world’s largest, most diversified food and beverage company, already announced in 2020 a series of investments that will further strengthen its footprint in China. This time Nestle ramps up its investment in Qingdao for new coffee R&D, the production base of healthy food, and infant supplementary food.
Nestle China said it plans to release more information about the new investment in April. The amount of investment is undisclosed. Despite the pandemic in 2020, Nestle China’s revenue exceeded 44 billion RMB (US$6.77 billion) last year. The Swiss food giant is undergoing a deep restructuring of its business portfolio in China to focus on key categories – infant nutrition, confectionery, coffee, culinary, dairy products, and pet care. Therefore, last year Nestle announced to sell its local water business to Tsingtao Brewery and sell Yinlu peanut milk and canned rice porridge business in China to Food Wise Co., Ltd.
Nestle ramps up investment in Laixi factory in Qingdao to build a new coffee R&D production base and infant supplementary food production base. The newly established center in Qingdao will implement 6 independent patents in more new and innovative coffee products.
In 1994, Nestle established Nestle Qingdao Ltd. and set up a factory in Laixi, which mainly produces dairy products such as condensed milk, UHT milk, and light cream. Mr. Zhao Lan, the General Manager of Nestle’s factory in Qingdao, revealed that Nestle initially considered several cities for the infant supplementary food project; after 6 months of negotiation, the company finally decided on Laixi because Nestle already has facilities there that meet the project’s production requirements.
“People may need more high-end products than cost-effective products. Nestle will invest in more high-end products that create faster growth, higher profit margins, and in line with industry trends. We are optimistic about the Chinese market in 2021,” said Mr. Schneider, the CEO of Nestle.
Obviously, we will follow up on all the new initiatives coming from Nestle in China and Asia. Stay tuned!