Nestle bullish on prospects in China

Nestle is committed to long-term investment in China, said the CEO of the Swiss food and beverage giant, Philipp Navratil, highlighting the country's agile consumer market and the opportunities it offers in technology, sustainability and local brand development.

"We are optimistic about being here in China and to keep growing alongside China," Navratil said at the China Development Forum 2026 in Beijing on Monday. "This is a place where we can get inspired and then bring some innovation out to the world."

China's consumer market, Navratil said, is transitioning from a phase of incremental expansion to one of leadership in innovation, particularly in food, beverages and technology.

"Consumers move very fast here, and there is a lot of focus on technology and artificial intelligence, which is another area where we want to lead," he said.

The CEO said the company's strategies are aligned with the country's broad economic goals, including boosting domestic consumption and driving the green transition.

"We work together with local farmers in coffee and dairy here in China," he said. "This is very much aligned with what the company wants to do in sourcing regenerative agriculture and supporting decarbonization."

Nestle has been present in China for almost 40 years and currently operates 23 production factories. More than 90 percent of its products sold in the country are produced locally, and a similar share of ingredients is sourced domestically. "That is the best way to be long-term relevant, anchored, and invested in China," he said.

Globally, Navratil said the company is focusing on five priorities: strengthening its portfolio in coffee, pet food, nutrition and health, and food and snacks; driving volume growth and brand building; improving efficiency; generating cash; and cultivating a performance-driven culture.

He said that local brands such as Totole, a chicken bouillon product, and candy brand Hsu Fu Chi are increasingly important in China and are gaining traction abroad.

Innovation is central to its strategy. Navratil said that China is a testbed for trends that can be scaled up globally. "You don't always need to be the first one, but it's good to be a fast second," he said.

AI is another area of investment. Navratil described three applications: enhancing factory and supply chain efficiency, accelerating product innovation and improving targeted marketing. "We use AI for insight generation, testing concepts, and producing better innovations that are more relevant for consumers," he said.

"We see opportunity," Navratil said of the Chinese market. "By continuing to invest in innovation, research and development and our people, we can support the transition to upgraded local consumption." (source: China daily)