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Nestlé has announced that an agreement has been reached with the Hsu family to acquire the remaining 40% stake in Hsu Fu Chi, a confectionery manufacturer in China.

The partnership between Hsu Fu Chi and Nestlé began in 2011, when Nestlé acquired 60% of Hsu Fu Chi's shares. Nestlé has since provided technical and marketing support for recipes, R&D and quality control for the Hsu Fu Chi family of brands.

Since joining the Nestlé family, Hsu Fu Chi has launched a range of new products and expanded its portfolio to include jelly, pastries, KitKats and the recently launched Milo Sports biscuits. With this latest acquisition, Hsu Fu Chi will have wider access to Nestlé’s resources and will also allow Nestlé to develop its domestic snack and confectionery business through the existing distribution network.

Nestlé currently operates 23 factories, five product innovation centres and three R&D centres in China, as well as employing more than 21,000 employees across the country.

 Xiqiang Zhang, CEO of Nestlé Greater China, said: “This move combines Hsu Fu Chi’s operational efficiency and entrepreneurial spirit with our proven innovation capabilities, accelerating the growth of the Hsu Fu Chi brand and further strengthening Nestlé's market presence in China. This move also demonstrates our long term commitment to the Chinese market and will enhance our ability to develop international and local brands in this dynamic market."