Nestlé recently announced its full acquisition of Hsu Fu Chi, planning to purchase the remaining 40% stake. This move signifies Nestlé’s complete control over Hsu Fu Chi, further accelerating its growth in China’s snack and confectionery market. Through this acquisition, Hsu Fu Chi will gain broader access to Nestlé’s global brand and product resources to achieve its growth objectives. While Nestlé has not disclosed the acquisition price or subsequent resource allocation plans, this action reflects its confidence in Hsu Fu Chi’s long-term value and optimism about its potential growth opportunities.

Founded in 1992 by the four Hsu brothers from Taiwan, Hsu Fu Chi is headquartered in Dongguan, Guangdong, and is a well-known Chinese leisure food brand, primarily producing candies, pastries, sachima, and other products. In 2011, Nestlé acquired a 60% stake in Hsu Fu Chi for $1.7 billion, valuing its distribution channels and localized product lines in China. However, in recent years, Hsu Fu Chi faced challenges of sluggish growth. Through product innovation, deeper penetration into lower-tier markets, and investments in e-commerce, its market performance has gradually recovered, achieving a record-high market share during the 2023 Chinese New Year. In 2024, Nestlé’s confectionery business in China recorded mid-single-digit growth, with Hsu Fu Chi and KitKat performing steadily.

This acquisition is part of Nestlé’s new CEO Laurent Freixe’s “growth-first” strategy, which aims to enhance competitiveness in the Chinese market by integrating resources and focusing on core brands and high-growth areas. As a key component of Nestlé’s confectionery business, Hsu Fu Chi will continue to meet diverse consumer demands through brand revitalization, product innovation, and category expansion, with a goal of reaching a 10-billion-yuan scale by 2027.

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