Monday, April 18, 2011

Nestlé Expands in China

Nestlé SA said today it has acquired a 60% stake in Chinese food maker Yinlu Foods Group Co., expanding the Swiss company's instant-food offerings in a key growth market to help compensate for more sluggish sales in developed countries.

Family-owned Yinlu is a well-established brand in China and a major distributor of ready-to-drink peanut milk and instant canned rice porridge. The deal extends cooperation between the two companies, as Yinlu is a co-producer of Nestlé's Nescafé coffee in China.

M&A activity in the food sector could lead to renewed interest in US-listed China food stocks, such as American Lorain.

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