Nestle(US:NSRGY) Sou Hu Cai Jing·2026-01-11 01:45Core Viewpoint - Nestlé has acquired the remaining 40% stake in Xu Fu Ji, marking the complete transition of the once-local candy brand into foreign ownership, raising questions about the preservation of cultural significance in Chinese traditions [1] Group 1: Company History and Development - Xu Fu Ji started as a small workshop in Dongguan, founded by four brothers from Taiwan, who initially sold candy on the streets of Taipei in the 1980s [3] - The company transformed from a contract manufacturer to an industry leader by introducing gift box packaging in 1996, which was considered high-end at the time, priced at 20 yuan [5] - By 2011, Xu Fu Ji achieved annual revenue of 4.3 billion yuan, but faced challenges with the entry of international brands like Dove and Ferrero into the Chinese market [5][7] Group 2: Financial Performance and Strategic Changes - After a significant investment from Nestlé, which acquired 60% of the company for $1.7 billion, Xu Fu Ji aimed to enhance its technology and research capabilities [7] - The company struggled with declining sales due to the rise of e-commerce and health trends, leading to a drop in performance, with annual reports no longer listing Xu Fu Ji separately [7] - A turnaround occurred post-2020 with the introduction of live-stream selling and low-sugar products, projecting revenue to exceed 7 billion yuan in 2024 [9] Group 3: Market Position and Consumer Sentiment - The acquisition by Nestlé has raised concerns about the future of Xu Fu Ji, especially as younger consumers gravitate towards brands like Three Squirrels and Liangpin Shop [11] - Quality issues have been reported, including incidents of foreign objects found in products, which may affect consumer trust [11] - The sentiment among consumers may not focus on the ownership of the brand but rather on the quality and pricing of the products, especially during festive seasons [12][14]