(Yicai Global) Oct. 14 -- Nestlé has made China a separate business, splitting it off from Asia, Oceania and Africa, and appointed the first Chinese person in five years to run it, as the market rebounds quickly from the pandemic.

Nestlé’s board has approved the creation of new geographical zones from Jan. 1, 2022, to strengthen the company’s market-led approach and further its ability to win in a rapidly changing environment, the Swiss food giant said yesterday.

After the change, Nestlé's business zones will be North America, Latin America, Europe, Asia, Oceania and Africa, and China.

“Zone China is one of the fastest-moving food and beverage markets in the world and offers significant growth potential for Nestlé,” the company said. “It represents CHF5.7 billion (USD6.2 billion) in annual sales.”

The adjustment will give Nestlé China bigger decision-making power, food industry analyst Zhu Danpeng told Yicai Global, noting that the company increasingly values the Chinese market as it has recovered quicker from the pandemic.

Nestlé also announced that David Zhang, chief executive of its food seasoning business Totole sand business executive officer for food in China, will become vice president and CEO for China from Jan. 1, replacing Rashid Qureshi, who will leave the firm at the end of the year.

During his career, Zhang has proved himself at product and business model innovation, and started to expand business into lower-tier Chinese cities this year. Yicai Global learned that he values communication with consumers, and has often appeared on the videos Shanghai-based Totole posted on Douyin, TikTok’s sister app in China.

The appointment of a local chief also signals Nestlé’s desire to bring its China business closer to consumers, Zhu added.

Nestlé's first-half sales reached CHF41.8 billion (USD45.3 billion), an annual gain of 1.5 percent, and an organic increase of 8.1 percent, its financial results showed. The Chinese market achieved two-digit organic growth over the period, but the firm did not disclose the exact amount.

Editors: Dou Shicong, Futura Costaglione