Nestlé confirms Hsu Fu Chi talks
Nestlé has confirmed that it is in negotiations with China’s largest listed confectionery company, Hsu Fu Chi.
Hsu Fu Chi is famous for the Sachima breakfast bar and the company has more than 16,000 sales outlets and 100 sales affiliates. It says in a statement, “The group has long been pursuing strategic talks with potential confectionery partners in the market. Interactive contacts have been conducted with counterparts from Japan, Europe and the US for years under a continued policy.”
The company said it was in talks with Nestlé and other companies about a “long-term partnership agreement”.
China’s food and drinks sector has been targeted by many global companies in recent years, as rising incomes prompt people to spend more on food.
For Nestlé, the potential transaction would mark a further step towards fulfilling its ambitions in emerging markets and has a goal to increase revenues from emerging markets to 45%, up from the current 38%, by 2020.