Press Release: Nestle: Nestlé agrees to sell Yinlu peanut milk and canned rice porridge businesses to Food Wise Co., Ltd.

Vevey, November 25, 2020

Nestlé agrees to sell Yinlu peanut milk and canned rice porridge

businesses to Food Wise Co., Ltd.

Nestlé today announced that it has agreed to sell its Yinlu peanut

milk and canned rice porridge businesses in China to Food Wise Co., Ltd.

The deal covers all of Yinlu's operations, including its five factories

in Fujian, Anhui, Hubei, Shandong and Sichuan. Yinlu brands had sales of

CHF 700 million in 2019. Both parties have agreed not to disclose the

financial terms of the transaction.

Food Wise Co., Ltd., a company controlled by the family of Yinlu founder

Chen Qingshui, is well-positioned to enable a smooth transition and

ensure the long-term success of that business.

The transaction allows Nestlé to focus on key categories in China:

infant nutrition, confectionery, coffee, culinary, dairy and petcare,

capitalizing on the company's strong brands, digital capabilities and

innovation engine to drive growth.

As part of the transaction, Nestlé will retain its ready-to-drink

(RTD) Nescafé coffee business and distribute the products across

most of the Greater China Region. Nescafé is a strategic growth

driver for Nestlé, and the company continues to invest to further

strengthen the brand across all channels in the market. The entire

Nescafé business in China will be managed by one team, using

synergies and strengthening capabilities that will help drive further

growth in the business.

Yinlu will continue to manufacture the Nescafé RTD products for

Nestlé and will distribute the products in several provinces. Yinlu

will continue to manufacture and sell Nestea products under license from

Nestlé.

Nestlé is fully committed to the Greater China Region, which offers

significant growth opportunities. The Greater China Region is the second

largest Nestlé market globally with sales of nearly CHF 7 billion

in 2019. Nestlé has invested about CHF 800 million there during the

last five years.

The transaction is expected to close by the end of this year.

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com

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Nancy He Tel.: +86 10 8434 7656

nancy.he@cn.nestle.com

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Investors:

Luca Borlini Tel.: +41 21 924 3509

ir@nestle.com

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(END) Dow Jones Newswires

November 25, 2020 01:15 ET (06:15 GMT)