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Nestlé opens new Research and Development Centre in Beijing

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Vevey, Switzerland

Vevey, 31 October 2008 - Nestlé today inaugurated a new Research and Development Centre in Beijing, underlining the company’s commitment to R&D in China, as well as to Chinese consumers. The inauguration was attended by Zhao Fengtong, Vice Mayor of Beijing, Lin Fusheng, Head of Haidian District, Nestlé CEO, Paul Bulcke, CTO Werner Bauer and market Head of Nestlé China, Patrice Bula.

Nestlé is the first western food and beverage company to create a full-scale R&D Centre focusing on both basic research and product development, in China. R&D Beijing is Nestlé’s second R&D facility in China, and its 24th world-wide. This extension of Nestlé’s R&D network underlines the fact that Nestlé is a science-driven company with a long term vision.

Food safety and quality will be a major focus of this new R&D Centre. The safety and quality of food are addressed at every stage of product development – from the selection of ingredients to the choice of packaging material. Analytical science plays a vital role in safety and quality. It is used to detect absence or presence of potential contaminants in products to assure safety. It is used to quantify nutrients and to characterize ingredients to assure quality and regulatory compliance.

In addition to safety and quality, R&D Beijing will work on Nutrition and Life Sciences research, food technology, processing and packaging. Life Sciences research at the Beijing R&D Centre will use different approaches to address three key consumer health benefits – growth and development, healthy ageing and weight management.

Nestlé R&D in China will help to develop the scientific and innovative potential of the region, as well as that of the company. R&D Beijing will engage in research collaborations with Chinese universities and research organisations. Through sharing knowledge and expertise, these research collaborations will deliver a better scientific understanding of how food and food ingredients impact on human health and wellbeing. This will include research on the benefits of traditional Chinese ingredients, as well as the ways that these, and other ingredients, can be included in foods and beverages in a bioavailable form.

Nestlé is investing approximately RMB 70 million (CHF 11.5 million) in R&D Beijing, bringing the company’s total R&D investment in China to RMB 110 million (CHF 18 million). Nestlé has the largest R&D network of any food and beverage company, with an investment of CHF 1.88 billion in 2007.

Contacts:
Media: Robin Tickle Tel.: +41 (0)21 924 22 00
Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22