Nestlé has acquired the remaining 40% stake in Chinese confectionery business Hsu Fu Chi from the founding Hsu family for an undisclosed sum.
The Switzerland-based KitKat manufacturer purchased a 60% stake in Hsu Fu Chi, a prominent confectionery brand in China, in 2011 for $1.7bn. Since then, it has offered technical and marketing support in areas like recipes, R&D, and quality control for the company’s products.
In a statement, Nestlé confirmed its total control over the business, asserting that this transaction will “enable wider and easier access to Nestlé global brand and product resources for Hsu Fu Chi to achieve its growth agenda.”
Moreover, the company indicated that it would leverage Hsu Fu Chi’s distribution network to expand its snacking and confectionery business across China.
Nestlé Greater China region CEO Zhang Xiqiang stated: “This move combines Hsu Fu Chi’s efficient operations and entrepreneurship with our proven innovation and renovation capabilities. It accelerates the development of the Hsu Fu Chi brand and further reinforces Nestlé’s presence in China.”
He added, “It also demonstrates our long-term commitment to China and enhances our ability to grow our portfolio of international and local brands in this dynamic market.”
Originally established in 1992 by the Hsu family from Taiwan, Hsu Fu Chi has its production base in Dongguan, located in southern Guangdong province.
As the world’s largest food company, Nestlé has maintained a presence in China for nearly 40 years. The company operates 23 factories, five product innovation centers, and three R&D centers, employing more than 21,000 individuals across the country.
In its 2024 financial report released in February, Nestlé disclosed that revenues from its China operations reached SFr4.97bn ($5.51bn).
