http://www.bloomberg.com/apps/news?pid=10000085&sid=axRA0BrWEerQ&refer=europe
Nestle's Brabeck Says China Sales to Rebound (Update1)

Sep. 2 (Bloomberg) -- Nestle SA Chief Executive Peter Brabeck expects
sales growth in China to rebound this year as new products and
in-store promotions win back customers after the company's withdrawal
of two milk-powder products in the country.

Vevey, Switzerland-based Nestle recalled two Neslac products in June
after authorities found they contained too much iodine. Customers in
China, the company's second- fastest growing major market, bought
fewer Nestle products as a result. Nestle, which makes KitKat
chocolate and bottles Perrier water, spending more on marketing and is
introducing herbal mineral water to tap local demand for health
products.

``All that I have heard and seen has made me quite confident that we
should be able to have again this fantastic growth that we've enjoyed
over the last five years,'' Brabeck said in an interview in Beijing on
Aug. 31, after visits to supermarkets and meetings with government
officials.

Sales growth in China, Hong Kong and Taiwan slowed to 7.5 percent in
the first half from 13 percent last year, held back by the withdrawal
of Neslac. Brabeck, 60, is looking to China, the world's
fastest-growing major economy, to stoke demand as European consumer
spending stagnates.

The milk-powder cans now carry a sticker with a ``thumbs-up'' logo to
show it's produced in line with iodine standards. Nestle is giving out
samples and stationing doctors in Beijing supermarket chains to answer
customer concerns.

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