Sector News

Nestle to spend $200 mln revamping South Africa factories

September 18, 2014
Food & Drink
(Reuters) – Nestle will invest around $200 million expanding its coffee factory in South Africa and revamping other facilities producing consumer goods, the incoming head of the local unit said on Wednesday.
 
Ian Donald, who will take over as chairman and chief executive of the Vevey-based firm’s South African unit next month, said the increased capacity of the coffee factory would create an export hub for sub-Saharan Africa.
 
Nestle has nine factories in South Africa, making consumers goods like baby milk powder, coffee creamer and instant noodles.
 
Donald said the company was looking at setting up manufacturing plants in several other African countries, including Ethiopia and Mozambique. He declined to give details or a time frame for those investments.
 
Nestle, which makes about 4 percent of its sales in Africa, could “easily” push that up to 10 percent, Donald told Reuters, without giving details.
 
“We’re being realistic with sub-Saharan Africa. We realise that we going to have to walk before we run, so, we are still building businesses that should contribute significantly to group revenue in the future,” he said.
 
Africa has been in the spotlight for global consumer firms since Wal-Mart’s $2.4 billion acquisition in 2011 of South African retailer Massmart gave the world’s largest retailer a foothold in several sub-Saharan countries.
 
Companies want their products on the shelves of retailers such as Shoprite which have laid out aggressive plans for store openings across the continent of a billion people.
 
Shoprite – Africa’s largest retailer – and rivals Massmart and Pick n Pay have been slow to put their plans into action due to a lack of shopping malls in most of the continent.

comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.