SYDNEY: eCargo Holdings Limited (ECG), a supply chain solutions provider for the Asia market, has announced a partnership with Nestlé, the world’s largest food and beverage company, to sell its coffee and dairy products in China through cross-border channels.

eCargo will provide Nestlé with supply chain, distribution, eCommerce and digital marketing solutions for its coffee and dairy range, which includes Nestlé Gold, Starbucks coffee and Milo. The cross-border trade management will be facilitated by Flow, eCargo’s proprietary platform that offers B2B supply chain solutions.

China’s coffee market is a lucrative and growing industry, expected to reach $13.6 billion by 2026. Nestlé is a leading player in this market, with strong sales growth in 2022 driven by Nescafé and Starbucks products. Nestlé also dominated the online coffee product sales in China in the first quarter of 2022, accounting for 10% of the total sales on Alibaba’s eCommerce platforms.

eCargo CEO Lawrence Lun said that the partnership with Nestlé is a validation of eCargo’s capability to help brands sell more in China. He also noted the potential for further growth and expansion of coffee consumption in lower-tier cities in China.

Nestlé Head of Omni Strategy and F&B Cross Border eCommerce Daniel Wong said that eCargo brings a wealth of experience in both logistic and commercial areas to help optimise Nestlé’s supply chain costs and identify growth opportunities in the dynamic China market. He expressed his excitement to work with eCargo to deliver double digit growth.