Return of Yinlu founder: Chen Qingshui family takes over peanut milk and Babao porridge business from Nestle

category:Finance
 Return of Yinlu founder: Chen Qingshui family takes over peanut milk and Babao porridge business from Nestle


It is also worth mentioning that although Yinlu has stripped off the Nestle brand matrix, it will continue to process and produce Nestle coffee ready to drink products for Nestle and distribute them in some provinces of China. Meanwhile, Yinlu will continue to produce and sell Nestle tea extracts under the license of Nestle.

Yinlu Babao porridge and Yinlu peanut milk were once the memory of a generation. What kind of history has Yinlu gone through, from domestic brands to foreign companies and now back to the founders hands?

In 1985, Chen Qingshui and Chen Qingyuan raised 30000 yuan to establish Xinwei Xinghua canning factory in Tongan County; in 1990, Huang Fuhua, an overseas Chinese, invested 200000 US dollars to establish Xiamen Tongmao food canning Co., Ltd.; in 2000, the enterprise again introduced funds from Taiwan to establish Xiamen Yinlu Food Co., Ltd.

With the help of two popular products, Yinlu Babao porridge and Yinlu peanut milk, Yinlu ushered in its peak in 2010. In 2007, the sales volume of Yinlu exceeded 3 billion, and in 2010, its sales exceeded 5 billion. Yinlu has become a black horse enterprise in the food and beverage industry, but it has also attracted the attention of foreign investors.

In 2011, Nestle acquired 60% of Yinlus equity, but at that time, the two sides were still in a joint venture relationship, not a merger and acquisition. After that, Yinlu went through two equity acquisitions. In 2017, Nestle acquired an additional 20% equity from Yinlus joint venture partner; in 2018, Nestle acquired the remaining 20% equity to complete the control.

In fact, as early as the end of 2019, Nestle will sell silver egrets. In March 2020, the news was further confirmed when it was reported that nestle was working with JP Morgan to prepare for the sale of the heron and to find a buyer for about $1 billion. For the buyer, there have been many news from the market, such as Wahaha, China Resources beer, unified food, etc., but none of them has been confirmed.

The continuous sale is based on the brand slimming plan of Nestles current CEO Mark Schneider.

Looking back on the sales cases in the past two years, Nestle sold the US confectionery business to Ferrero with a transaction amount of US $2.8 billion in 2018; sold its skin health company with SFR 10.2 billion in 2019; sold the US ice cream business for us $4 billion; and then sold 60% of the meat product business Herta to Spanish food company Casa tarradellas. After taking office in 2017, Schneider publicly proposed to replace 10% of its existing business by the end of 2020. In fact, through business reshuffle, Nestle has broken the dilemma of continuous decline in net profit. Since 2014, Nestles net profit has decreased year by year, from 14.5 billion Swiss francs to 7.2 billion Swiss francs; in 2019, Nestles net profit increased by 24% to 12.6 billion Swiss francs. Source: surging news editor: Chen Hequn_ NB12679

Looking back on the sales cases in the past two years, Nestle sold the US confectionery business to Ferrero with a transaction amount of US $2.8 billion in 2018; sold its skin health company with SFR 10.2 billion in 2019; sold the US ice cream business for us $4 billion; and then sold 60% of the meat product business Herta to Spanish food company Casa tarradellas.

After taking office in 2017, Schneider publicly proposed to replace 10% of its existing business by the end of 2020. In fact, through business reshuffle, Nestle has broken the dilemma of continuous decline in net profit. Since 2014, Nestles net profit has decreased year by year, from 14.5 billion Swiss francs to 7.2 billion Swiss francs; in 2019, Nestles net profit increased by 24% to 12.6 billion Swiss francs.