Sino-Swiss Business News
Nestlé launched its plant-based Harvest Gourmet brand in China, moving into the country’s meat substitute industry that has seen a surge of interest from investors and brands over the past year. The Swiss food and drink giant said the brand, which is available in Australia, would offer burgers, sausages, nuggets and mince, and will also sell dishes aimed to appeal to Chinese taste-buds, such as kung pao chicken, braised meatballs and pork belly. Demand for alternatives to regular meat is surging due to concerns about health, animal welfare and the environment. Entrants to China’s meat substitute market in recent months have ranged from domestic firms Zhenmeat and Starfield to U.S. firm Beyond Meat Inc, which has collaborations with Starbucks and Yum China’s KFC chain. Harvest Gourmet products sold in China will be produced by Nestlé’s faux-meat factory in Tianjin, its first in Asia. The brand will open an online store on Alibaba Group’s Tmall marketplace this month, and will gradually start offering products for sale from Alibaba’s Hema supermarket chain by the end of 2020, Nestlé said. “We see China leading the trend towards a new generation of plant-based food in Asia, as people look for options that are good for them and good for the planet,” Rashid Qureshi, chief executive of Nestlé Greater China, said in a statement.
Artificial intelligence expert SenseTime has entered into a strategic partnership in Shanghai with Swiss elevator leader Schindler to develop an escalator safety intelligent response system. The pair vowed to use AI to detect and manage prospective safety risks or concerns embedded in elevator systems while ensuring operational efficacy at the same time. Leveraging multiple AI technologies by SenseTime from object detection and behavioral recognition to density analysis, the system is designed to voice security alarms upon entrances of escalators to those with bulky luggage or wheelchairs, or alert of over-density in a certain space to prevent the occurrence of stampede accidents, the company said in a press release. Also, when no passenger approaches the escalator zone, the system can inform staff members to halt operations by remote so as to trim operational costs.
The cultural industries have suffered greatly due to restrained social gathering since the Covid-19 outbreak. However, along with the challenges, the Covid-19 has also motivated the transformation of traditional cultural industries, and the digitization of cultural activities is becoming a new trend. To promote the recovery of cultural industries as well as to accelerate international cooperation, the Yangtze River Delta International Cultural Industries Expo (YRDICIE) opened as planned and adopted a hybrid format combining on-site and online exhibitions. This is the first time for Switzerland to present at the YRDICIE. Creative Hub Switzerland, together with swissnex China has organized a Swiss Pavilion at the “Overseas Elite Sections” of the Expo to showcase six Swiss startups from product design, esports, and art business. During the four-day exhibition, the startups not only introduced their product and concept through live broadcasting but also joined the online matchmaking sessions to better connect with the Chinese market.
The Federal Department of Foreign Affairs of Switzerland (FDFA) has signed a memorandum of understanding (MOU) for cooperation in energy efficient buildings with the Ministry of Housing and Urban-Rural Development (MoHURD) in China. The Ambassador of Switzerland to China Bernardino Regazzoni met with Ni Hong, Vice Minister of China’s Housing and Urban-Rural Development on November 24th and signed the agreement. Under the MOU, the Swiss Agency for Development and Cooperation, acting for FDFA, will strengthen project cooperation and exchange technological expertise in energy-efficient and zero-emission buildings with its counterpart from MoHURD. “It is a great opportunity for the two countries to sign an MOU on energy efficient buildings this year as we are celebrating the 70th anniversary of the diplomatic relations between Switzerland and China,” said Ambassador Bernardino Regazzoni. Switzerland and China, both signed the Paris Agreement, are committed to tackling Climate Change. The Federal Council of Switzerland plans to reduce its net carbon emissions to zero by 2050 whereas China has pledged to reach carbon neutrality by 2060.
While this year’s pandemic has cast over the world a shadow of uncertainty, it also prompts business observers to reflect on how to achieve more sustainable development. “COVID-19 is a severe wake-up call for mankind. We realized that it is so important to respect nature. Globalization will take a new turn now,” said Wang Huiyao, president of the Center for China and Globalization, a think tank based in Beijing. “It is time to turn to sustainable concrete practices if we want to reach targets, such as the 2060 Chinese carbon neutrality goal,” he said during a panel discussing at the forum. Echoing Wang’s comments, Rashid Qureshi, chairman and CEO of Nestlé GCR, noticed that the pandemic changes consumer behaviors as they are now “more aware of the necessity to protect the environment”, which direct companies into more sustainable business models. He said sustainability cannot be finished by one country but through partnership; that’s why better cooperation between Switzerland and China counts. The Sino-Swiss Economic Forum started in 2010 and is a biennial event that is the biggest economic forum between Switzerland and China. Friday’s event, attended by more than 300 business and government leaders, marked the closing ceremony for this year’s forum, which saw a series of seminars in October.
Around 50 Swiss multinational corporations, including engineering company ABB, pharmaceutical firm Novartis, food and beverage giant Nestle, inspection group SGS as well as small and medium-sized enterprises are participating in the ongoing China International Import Expo in Shanghai from November 5th to 10th. The companies have displayed a slew of sustainable and innovative solutions such as fast charging stations for electric vehicles, environmentally friendly packaging and robot nurses using artificial intelligence and automation. “I think the CIIE is the perfect platform for constructive business dialogues with our potential partners. We decided on the idea of setting up a metering laboratory with Zhoushan Free Trade Zone when their leaders visited our booth in the previous expo. The laboratory has since come to fruition,” said Frankie Ng, CEO of SGS Group. Dan Brindle, President of Novartis Group, said, “We view the CIIE as an opportunity to connect with stakeholders here to collectively contribute to improving the business environment, help facilitate international exchange and further drive global trade.” Novartis is showcasing innovative medicines, breakthrough cell and gene therapies, and a pipeline of products that it plans to bring to China in the near future. On November 6th, the Swiss Consulate General in Shanghai organized a Sino-Swiss business reception to celebrate with the business community the 70th anniversary of bilateral relations.
The first edition of the Montreux Jazz Festival China will take place in Hangzhou, in the province of Zhejiang, from October 5th to 8th 2021. This new Festival licence will offer an eclectic programme on the theme “When West Meets East”, combining Chinese and Asian music and of course jazz, which has been enjoying a new lease of life in the country in recent years. This new partnership pursues the Montreux Jazz Festival’s desire to forge links with other continents and to mix different musical cultures. Hangzhou shares many similarities with the original Festival venue. A lakeside town and tourist destination, it is situated on the shores of the West Lake, a UNESCO World Heritage site, as are the Lavaux vineyards and the audiovisual archives of the Montreux Jazz Festival. The balance between heritage and innovation is also at the heart of the values shared by the Festival and Hangzhou. The city combines a thousand-year-old culture with meteoric digital development, home to many companies engaged in digital transformation.
Daryoush Ziai, CEO of Jiading-based Schindler (China) Elevator Co, shares the honor of his Shanghai Magnolia Silver Award with his wife at the presentation ceremony. Having lived in China for 10 years, Iranian-American Daryoush Ziai really is a China hand. Chinese-style decorations on his desk include bamboo-carving art, duplicates of terra-cotta warriors and chinaware. Bamboo bonsai are planted inside the building, while the meeting rooms are adorned in traditional Chinese style. Last month, Ziai won the Magnolia Silver Award for his contributions to the elevator industry in Shanghai. He said the medal was a recognition not only for himself, but also for the leap in development of Jiading-based company Schindler (China) Elevator Co. Schindler Group, a Swiss company with a 140-year history, launched its largest research center in Jiading in 2016 and, after that, two more factories moved from Suzhou in neighboring Jiangsu Province to the district, both of which have been running on solar power since last year. The company’s goal is to provide high-technology and high-quality elevators for companies and consumers. “The annual production of elevators keeps increasing. We were also involved in the recent key project in Shanghai to install elevators in old residential houses, aiming to provide a more convenient way of life for residents,” said Ziai.
Mark Schneider, Nestlé CEO, commented: “Nestlé has remained resilient in a difficult and volatile environment. Our people have acted in a responsible and prompt manner to mitigate the impact of the global pandemic and have adapted quickly to evolving consumer needs. Strong organic growth was broad based and supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science, as well as the acceleration of our coffee business in the third quarter. We continue to develop our portfolio with speed and discipline. As an example, we are transforming Nestlé Health Science into a nutrition and health powerhouse through a combination of strong organic growth and targeted acquisitions. The recent additions of Zenpep, Vital Proteins and Aimmune Therapeutics are further steps in the expansion of our nutritional health offerings.” China saw negative growth, turning positive in the third quarter. Coffee, culinary and ice cream all delivered positive growth, with sequential quarterly improvements. The contraction in Wyeth infant formula sales continued to moderate. The roll-out of the locally produced Belsol brand is on track. Infant cereals and Purina PetCare both grew at a double-digit rate. Nestlé Professional reported a sales decrease, with growth recovering to almost flat in the third quarter. Strong momentum in e-commerce continued, driven by Nescafé, Starbucks products and dairy.
Givaudan opened its newest state-of-the-art fragrance production facility in Changzhou, China. In line with the recently announced 2025 strategy – Committed to Growth, with Purpose – China remains a key growth market for innovative and consumer-preferred fragranced products. The Changzhou production facility, costing more than CHF 100 million and constructed on a land area of 76,000 square metres, is outfitted with the most advanced auto-dosing system allowing for high accuracy and efficiency and an agile manufacturing environment. Consistent with Givaudan’s global manufacturing processes, the production facility meets the highest global and local standards in fragrance manufacturing including advanced environmental, health and safety features. It will substantially increase the company’s existing manufacturing output spanning personal, home and fabric care fragrances through to oral care flavours, encapsulated fragrances, and prestige perfumes to serve customers in China and Asia Pacific. CEO, Gilles Andrier said: “Opening this production facility in China – an important high growth market – demonstrates our commitment to our customers, and aligns to our 2025 strategy and purpose. This investment will strengthen our position as a strategic partner to our customers in the region and will cater to the increasing consumer demands for great smelling sustainable fragrances.”