Sector News

Nestlé to invest $1.2bn in Brazil

December 10, 2023
Consumer Packaged Goods

Nestlé has announced plans to invest BRL 6 billion (approx. $1.2 billion) in food and drink production in Brazil, with a series of payments scheduled between 2023 and 2025.

The funds will be primarily allocated to boost business growth, integrate new technologies in the industry, expand manufacturing facilities, transform its portfolio and advance the sustainability agenda in Nestlé’s chocolate, coffee, pet care and nutrition segments in Brazil.

Marcelo Melchior, CEO of Nestlé Brasil, said: “We are Nestlé’s third largest market in the world, and the even more accelerated growth of our business requires robust investment on different fronts: from expansion and new technologies in factories and supply chains, to new practices in regenerative agriculture and each portfolio increasingly broad and diverse, always focusing on solutions that take health, nutrition and well-being from pre-conception to healthy ageing”.

Nestlé plans significant developments in its chocolates and biscuits category, including the introduction of production lines, technologies and new products. In 2024, a new KitKat line will be launched at the Caçapava, São Paulo, facility, which, Nestlé says, is already the largest chocolate production facility in Latin America. In addition, the company aims to expand the industrial park by 2028, reaching a total of six exclusive lines in the inner city of São Paulo.

Furthermore, the food and beverage giant said that Brazil is on a path of innovation and premiumisation of coffee, contributing value to the category and driving business growth. Since 2019, all of Nestlé’s coffee acquisitions have been 100% certified and sustainably sourced. Emphasising sustainability, Nestlé’s coffees boast full traceability of raw materials, employ renewable energy in production, support capsule recycling in the country and invest in regenerative agriculture in the supply chain.

Nestlé Brasil provides specialised nutrition for all life stages and innovates in these categories, “focusing on different nutrition needs and constantly changing consumption habits,” said Nestlé. The product range includes supplements for pregnant women, infant nutrition products and adult items, which play a role in promoting healthy ageing through exclusive technologies.

Melchior highlighted: “For 2024, we continue with investments in productivity, innovation and sustainability of operations, with strategic projects for new technologies and production lines in order to contribute to business results. We will have another peak in investments, accelerating an ESG, innovation and digital transformation agenda that supports the continued growth of Nestlé’s Brazilian operation.”

By Rafaela Sousa


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