"Our investment this year will be much bigger than last year, and we believe we will find a territory in China's market," said Ken Donaldson, head of Nestle's ice cream business in China.

"We might not be the biggest player, but we have every intent upon being the preferred.

"We aim to make ourselves relevant to modern Chinese consumers by matching requirements in the most contemporary fashion and ensuring a truly great experience."

He made the remarks last week in Beijing when Nestle launched 12 ice cream products.

The company in the past year has been listening to consumers, in an effort to better understand their wants and desires and what motivates their purchases, he said.

Many foreign and local ice cream makers are increasing their efforts to cash in on China's fast-growing market.

British Unilever's Walls ice cream brand announced earlier this month it will invest an additional 150 million euros (US$160.9 million) in new product development and brand promotion in China this year.

Yili Group, one of China's largest ice cream producers, has said it will focus its efforts this year on the high-end ice cream market.

The Inner Mongolia-based Yili said it hopes to control 5 per cent of the high-end ice cream market in China this year.

There are around 4,000 ice cream companies in China.

Mengniu Group, also based in Inner Mongolia, last week launched in Beijing more than 20 ice cream products.

"The increasing GDP (gross domestic product) in China provides a positive environment for development of the ice cream market," Donaldson said.

There is huge growth potential in China's market, as Chinese people's per capita ice cream consumption is at a very low level, he said.

Currently, per capita ice cream consumption in China is less than 1 litre a year, compared with nearly 23 litres in the United States, Donaldson said.

Nestle began its ice cream business in China in 1992. It now has four ice cream factories - in Tianjin, Shanghai, Guangzhou and Hong Kong.

(Business Weekly April 8, 2003)