China's infant formula market upheaval is creating short-term challenges for Southland milk processor Mataura Valley Milk (MVM).
The company has opened a new production line in Tianjin to produce its popular Nestle 8Cubes brand, and is increasing its cold storage capacity in Guangzhou.
Nestle 8Cubes, available only in China, is a bite-size snack of individual ice cream cubes with a crunchy chocolate and sesame seed coating.
“This investment will enhance our ability to meet increasing consumer demand for our products,” says Ouyang Kai, vice president of Nestle Greater China region’s ice cream business unit.
“It also underlines our confidence in the long-term dynamics of the China market.”
Nestle has two ice cream factories in China, which produce Nestle brand products as well as the local brand 5Rams.
The 5Rams brand is known for its range of ice cream cones, which include flavours such as purple yam, lychee, and melon, as well as a selection of ice cream sticks in flavours including red bean, green bean and chestnut.
Nestle says it is looking to a long-term sustainable ice cream business in China.
“In the vibrant Chinese market, to expand production capacity and increase investment demonstrates our Chinese ice cream market confidence and determination, and helps us meet growing Nestle consumer needs.
“We constantly strive to meet consumers’ desire for ice cream products of high quality, innovation and safety,” the company says.