To Press Releases listVevey,October 8, 2001
Nestlé S.A. has signed an agreement with Haoji, the second largest chicken bouillon producer in China, to form a joint venture – Sichuan Haoji Food Co. Ltd. – 60 percent owned by Nestlé and 40 percent by Haoji. The assets of Haoji will be transferred to the joint venture. The price for the transaction was not disclosed. Based in Sichuan Province, Haoji manufactures and sells chicken bouillon and Sichuan-type spicy pastes under the Haoji brand, which is included in the transaction.
Nestlé will extend its worldwide know-how and expertise to the new joint venture in order to further accelerate its future growth, while the original founder will become the local joint-venture partner. This latest joint venture further strengthens Nestlé’s position in China, complementing its fast-growing culinary business. The rapidly growing bouillon market in China is expected to become the world’s largest bouillon market. This investment in the increasingly important western part of China gives Nestlé additional access to and expertise in the world famous Sichuan cuisine.
The transaction complements Nestlé's autumn 1999 acquisition of a majority participation in Totole, the undisputed leader in the chicken bouillon market in Eastern China and ensures the Group's leadership in the bouillon sector in China. This strategic joint venture also reinforces Nestlé’s strong commitment to China where Nestlé has already achieved a sustainable profitable growth.