To trim its mounting inventory and stem losses from sluggish business, Nestle China’s coffee factory in Dongguan, Guangdong province, has been incinerating instant coffee by the ton, burning up worth tens of millions of yuan since January [2015], reports the China Business Journal. Even though the incinerated coffee still has six months of legitimate shelf life, Nestle wants to maintain a tighter level of freshness, said He Tong, PR superintendent of Nestle China…Full Article: WantChinaTimes Mar 2015

Key Point

  • In 1997 Nestle began acquiring Chinese companies and has since acquired eight (i.e. Hsu Fu Chi, Yinlu, and more).

ChinaAg Comments

  • In December 2014, Nestle announced they would only procure coffee beans in Yunnan that are “4C” certified. During the 2012 to 2013 coffee crop season, approximately 33% of coffee bean procured from Nestle (Pu’er) met the 4C verification. The majority of these beans were not sold domestically but exported internationally.
  • In 2013, Yunnan Province produced almost 100,000 MTs of coffee or approximately 98% of China’s total output.
  • In 2012, China produced approximately 70,000 MTs of green (raw) coffee.
  • In 2011, Nestle acquired a 60% stake in China’s Yinlu Foods Group (ready-to-drink Nescafé coffee).
  • In 1988, Nestle established a presence (e.g. model farms, technical assistance projects) in Yunnan Province.

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