Nestle, New Plans for Baby Formula in China


Nestle, New Plans for Baby Formula in China

Nestle plans to launch a new line of baby formula in China this year under an existing brand, targeted at smaller cities, as the world’s largest packaged food company tries to lengthen its lead in the world’s biggest baby milk market. The new line, discussed exclusively with Reuters, will focus on smaller provincial cities, often in China’s western provinces, where greater shipping distances and lower incomes can make some imported brand goods unaffordable, though wealth there is growing. Producers of many consumer staples such as soft drinks and soap had to seek growth in the less-profitable provincial cities years ago, as China’s richer eastern markets matured. But the baby milk units of Nestle, France’s Danone and Reckitt Benckiser enjoyed years of prosperity mainly just targeting parents in big cities like Shanghai and Beijing, banking on their appetite for ever-pricier premium formulas and foreign brands following a domestic 2008 tainted milk scandal. …… Read

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