Swiss food giant Nestlé S.A. has signed an agreement with Haoji, the second largest chicken bouillon producer in China, to form a joint venture. Sichuan Haoji Food Co. Ltd. will be 60 per cent owned by Nestlé and 40 per cent by Haoji. The assets of Haoji will be transferred to the joint venture. The price for the transaction was not disclosed. Based in Sichuan Province, Haoji manufactures and sells chicken bouillon and Sichuan-type spicy pastes under the Haoji brand, which is included in the transaction. The Swiss company claims that this latest joint venture further strengthens Nestlé's position in China and complements its fast-growing culinary business. According to a statement the company states that the rapidly growing bouillon market in China is expected to become the world's largest bouillon market and the transaction complements Nestlé's autumn 1999 acquisition of a majority participation in Totole, the leader in the chicken bouillon market in Eastern China.
