Multinational food and drink conglomerate Nestlé has reportedly selected JPMorgan Chase & Co to manage the sale of its Chinese unit Yinlu Foods Group.

A source familiar with the deal told Bloomberg that Yinlu Foods could be valued at approximately $1bn.

Nestlé seeks to sell its significant stake in Yinlu Foods and retain only a small share. It will shift its focus towards the production of Nescafé ready-to-drink coffee.

The report also revealed that Nestlé has approached potential Chinese food and beverage companies, including Dali Foods Group Co, Hangzhou Wahaha Group Co and Uni-President China Holdings, as potential buyers.

As negotiations are in the preliminary stages, details of the divestment may change.

Established in 1985, Yinlu Foods produces and distributes canned foods and beverages. Its products include ready-to-eat canned rice porridge and ready-to-drink peanut milk.

based in Xiamen, Fujian Province, the company operates five production facilities in Xiamen, Shandong, Hubei, Anhui and Sichuan.

Nestlé acquired a 60% stake in Yinlu Foods in April 2011. It has been co-manufacturing ready-to-drink Nescafé coffee in China for Nestlé.

In December, Nestlé signed an agreement to sell its US ice-cream business to Froneri in a deal valued at $4bn.

Nestlé and PAI Partners created the ice-cream focused joint venture (JV) Froneri in 2016 following the merger of the PAI-owned R&R and Nestlé’s European ice-cream business in 20 countries merged.

Froneri will acquire various ice-cream brands, including Dreyer’s, Häagen-Daaz, Outshine, Skinny Cow, Edy’s, Nestlé Ice Cream and Drumstick.