China Food

400 million! Another investment from Nestle China

Nestle, the world’s largest food company, has a big new investment plan in Shuangcheng, Heilongjiang, which built its first factory in China 33 years ago.

Today, Nestle officially announced that it will invest 400 million yuan in Harbin Shuangcheng (200 million of which will be implemented this year), expand Nestle’s multi-faceted business capabilities in Shuangcheng, and further strengthen Nestle’s high-end production in local factories. Xiaoshidai learned that, together with this capital increase, Nestle has increased the capital of Shuangcheng by 700 million yuan for three consecutive years.

This is Nestle’s latest round of investment in China. Since the beginning of this year, the food giant has promoted a number of investment in China, including the announcement in May this year of an increase of 730 million yuan in Tianjin. “Although this is a challenging period, we still choose to invest actively in the Chinese market without hesitation.” Nestle Greater China Chairman and chief executive officer Rosedale said at the press conference today.

Nestle Greater China Chairman and CEO

Nestle Nestle dairy products, ice cream, industrial sales and candy business unit Ji Anlong, and vice president Yang Xuxiang Chinese mainland vice president of the Nestle infant nutrition office in April this year, exchanged with Xiao food and so on, talked about the specific purpose of the capital increase, and the future development strategy and new product plan of related businesses.

Next, please see the message sent back by the snack agent at the scene.

Another 400 million

Let’s take a look at how the 400 million will be spent.

First, Nestle plans to establish its world’s first nest é grain Competence Center (GCC) in Shuangcheng. The company said it hopes to replicate the Nestle dairy farming training center and Nestle coffee center model, and Nestle grain capability center will “integrate training, demonstration and scientific research of grain cultivation”.

“In the future, Nestle grain capability center will realize the function of” agricultural capability center “platform, covering a variety of agricultural raw materials including dairy products, grains, beans, fruits and vegetables.” Nestle said in a briefing today.

Foundation laying ceremony of Nestle grain capability Center

Second, this round of capital increase project also includes the expansion plan of Nestle dairy farming institute (DFI). DFI has been established for six years, training more than 10000 trainees, and the average daily yield of cattle on its own ranch is more than 42 kg.

This is the second phase of DFI’s expansion project, which completed the first phase last year. “Through this round of capital increase, the breeding capacity of the expanded ranch will be further improved, and the supply of A2 milk source will be increased, which will also help to promote the process of adopting local milk source for Nestle to produce Nene infant formula milk powder.” Nestle said.

Nestle dairy cattle Training Center

Third, the food giant plans to invest in increasing its high-end production capacity in food processing, covering infant complementary food and adult product lines, respectively. “The investment will be phased out over the next five years in two phases.” Nestle said.

Specifically, for infant supplementary food, Nestle said that it would expand the production area of baby rice flour in the original grain production area of Shuangcheng, realize the capacity increase of more than 50%, and upgrade the existing workshop technology. At the same time, on the basis of the existing Garbo puff project, the Garbo baby cereal healthy snack program is added to provide more choices of baby cereal snacks.

It is worth noting that Nestle is also planning to sell health products.

The snack generation learned that nestle will launch two functional health food products for the first time for the adult product line, which have the health functions of “increasing bone density” and “enhancing body immunity”. At present, these two products have already got “blue hat”.

“Health food is a large category, with a market size of more than 170 billion yuan in China. Especially in people over 50 years old, there is a great demand for health products. They are generally concerned about two issues. The first is the flexibility of movement, because people tend to be more and more inconvenient when they get older. So, one of our products is to increase bone density. ” Ji Anlong told the snack generation.

The second concern, he says, is immunity. “We’ve been studying this for a long time. Although we didn’t plan to launch this product because of the epidemic situation, now it seems that the timing of the launch is also very appropriate, because people pay more attention to the improvement of immunity.” Said gianlon.

Variety of complementary food

At present, in the Chinese market, the popularity of infant complementary food is not high. “We have done research and found that the penetration rate of complementary food is less than 50% even in the first tier cities of Beijing, Shanghai, Guangzhou and Shenzhen.” Yang told xiaoshidai.

But this segment is growing rapidly. According to the data of China Food Industry Association, the infant supplementary food market will reach 20 billion yuan in 2018, with an annual growth rate of 15% – 20% in the future. “Therefore, it is estimated that in 2024, the size of China’s infant complementary food market will exceed 40 billion, almost doubling, so this (growth space) is very large.” She said.

For Garbo, Nestle’s infant complementary food brand, the capital increase is expected to accelerate its growth in the Chinese market and expand its competitive advantage.

Jiabao puff produced by Shuangcheng factory

“Complementary food can play a very good role in the process of infants and young children entering a diversified diet from breast milk or milk powder. With the baby’s phased development, how to feed, are a set of scientific way and order. For example, the first supplementary food should start with the least sensitive and easily digestible cereal. In our culture, we start with rice, and then slowly add millet, barley, wheat and other ingredients Yang told xiaoshidai.

Therefore, in order to better help the baby transition to a diversified diet, Garbo complementary food categories and products also need to have a more diversified choice. “So how do we promote diversity? It mainly lies in two aspects: one is to introduce new technology in science and technology, so as to produce more diversified food. One is to diversify food materials, including cereals, vegetables, fruits, etc She said.

This is exactly what Nestle is doing this time.

Nestle grain capability Center

Yang said that Nestle’s grain capability center would “lay a good foundation” for the future application of diversified food ingredients. “With the diversification of SKU, in addition to Heilongjiang rice, Jiabao supplementary food may also need millet and some organic food materials. Through research on soil, water, seeds and farming methods, the center can help Garbo promote more comprehensive local food materials procurement. ” She said.

“We believe that in the future, it will not be limited to Cereals, but will become an agricultural capacity center, covering everything from cereals to beans, to vegetables, to fruits.” She said. It has been revealed that the above mentioned new snack items in the future include the use of “plant high protein beans” to produce a series of Garbo baby snacks.

“Baby rice noodles is the first business promoted by Garbo in China. Starting with rice noodles, we have now entered the category of fruit purees and snacks (such as puffs). Our next business strategy is to strengthen our advantages in technology and food materials, enter diversified categories and launch more diversified products. ” Yang told xiaoshidai.

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