If you live in China or somewhere with a good Chinese/Asian supermarket, you’ve probably seen the brand Hsu Fu Chi (徐福记). Founded in 1992 in Dongguan, Guangdong, by four Hsu brothers from Taiwan, Hsu Fu Chi has always been part of the confectionery and snack market in China. It is also expanding outside China, by not only exporting its candies but through the opening of its first concession abroad in Singapore last November.
Back in 2011, Swiss-based global FMCG goliath Nestlé bought 60% of the shares from Hsu Fu Chi. On 3 March, Nestlé announced through its official website that it had purchased the rest of the 40% from the Hsu brothers, and the brand will be completely owned by the group. This came after Nestlé reportedly considered selling the Chinese sweets brand.
However, between 2021 and 2024, Hsu Fu Chi released many new items across categories, such as jellies, sweets and biscuits, including gummy bears, coconut jelly and Milo biscuits. It also explored crisps, nuts and cakes. Currently, innovative products count for 20% of the brand’s revenue. The brand is sold in over 60 countries and regions. Last March, the president of Hsu Fu Chi, Liu Xinggang said that the brand had grown consecutively for 4 years and had revenue of over 7 billion RMB (960.87 million USD) and hoped to reach 10 billion RMB (1.37 billion USD) by 2027.
Nestlé, on the other hand, has been shrinking its diverse businesses by selling off its drinking water division to Tsingtao Beer and selling Yinlu Foods in 2020. It is trying to focus on its core businesses such as coffee and snacks. Given that snacks are a hot market in China and Hsu Fu Chi’s continues to grow, it makes sense for the Swiss giant to take the brand over completely.
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