Nestlé has announced plans to invest $1bn into its Mexico operations over the next three years, and has also invested $675m into a new facility in Arizona, US.
The investment plans for Mexico were announced in a meeting with the president of Mexico, Claudia Sheinbaum Pardo, Nestlé’s CEO for the Zone Americas, Steve Presley, and executive VP of Nestlé Mexico, Fausto Costa.
The programme will include increasing the capacity of production lines at the plants in Veracruz, Guanajuato, Querétaro and the State of Mexico. It will also support development of a new distribution centre, aiming to collectively consolidate Nestlé Mexico as an export hub.
Nestlé Mexico will continue to invest in the development of the Mexican agricultural sector through its responsible sourcing programmes, such as the Nescafé plan and the Nestlé Cocoa Plan, which operate in the states of Chiapas, Tabasco, Veracruz, Oaxaca, Puebla and Guerrero.
Additionally, the company estimates that the purchase of agricultural products to be made between 2025 and 2027 will reach around $2 billion, supporting local farmers.
Presley commented: “Nestlé Mexico has established itself as the fourth most important market for Nestlé worldwide; it is also the second in which the company invests the most, a testament to the commitment and trust we have in this country”.
“The recent historic investment not only reinforces our sustainable growth strategy but also reaffirms our dedication to contributing to the economic and social development of the region.”
Meanwhile, Nestlé USA’s new $675 million distribution centre in Arizona, US, contributes to over $3 billion of investment into Nestlé’s US manufacturing in recent years, aiming to strengthen its presence in the country.
The 630,000-square-foot facility, located in the city of Glendale, will produce creamers for brands such as Coffee Mate, Natural Bliss and Starbucks, with potential to expand to other beverages in the future.
According to Nestlé, with more than 70% of coffee drinkers using creamers, the company is poised to capitalise on this trend with its new site, designed for flexibility to enable Nestlé to adjust production based on evolving consumer preferences, seasonal shifts and trends.
The factory features sustainability initiatives, including water management systems that recycle up to 75% of treated water and the use of recyclable, food-grade plastic bottles. It also operates as a zero-waste facility and runs on renewable electricity.
Daniel Jhung, president of coffee and beverage for Nestlé USA, said: “Coffee culture is booming across the US as consumers seek more options for customisation and experimentation when it comes to their coffee at home. As the definitive leader in the refrigerated creamers space, we are focused on delivering on those consumer needs to drive the growth of our business and the category.”
by Melissa Bradshaw
Source: foodbev.com
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