Business Intelligence on Retailing, Franchising, and Consumerism in China

Nestle To Establish Two New R&D Organizations In China

World's leading food and beverage company Nestle announced plans to establish two new research and development organizations in China.

These two new R&D organizations respectively apparently target the Chinese food and beverage firms Yinlu and Hsu Fu Chi, in which Nestle has holding stakes.

Nestle revealed to the Chinese local media that this move aims to enhance their understanding about the Chinese consumers, ingredients, and local dining; and provide technical support to their businesses in other regions in Asia and the world. The two new organizations will be located in Fujian's Xiamen and Guangdong's Dongguan, respectively, supporting Nestle's joint ventures established with Yinlu and Hsu Fu Chi.

The Xiamen R&D unit will focus on the professional research on ready-to-drink beverages and provide support to the Chinese leading ready-to-drink peanut milk and ready-to-eat gruel maker Yinlu; while the Dongguan R&D unit will focus on baked goods and implement close cooperation with the candy, cookies and traditional snacks maker Hsu Fu Chi.

Nestle will reportedly announce their related investments detail in 2013.

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