Nestlé Expands its Largest Soluble Coffee Factory in Europe

The factory uses advanced freeze-dry technology to make Nescafé coffee products for consumption in the Russian market and for export to other Commonwealth of Independent States (CIS) countries.

Oct 19 2011 --- Nestlé has completed a CHF 240 million expansion of its soluble coffee factory in Timashevsk, Russia.

Located in the Krasnodar region, the site is Nestlé’s largest soluble coffee factory in Europe. It is also the company’s biggest investment project in Russia so far.

The factory uses advanced freeze-dry technology to make Nescafé coffee products for consumption in the Russian market and for export to other Commonwealth of Independent States (CIS) countries.

Nescafé is the leading soluble coffee brand in Russia; the world’s biggest market for soluble coffee.

The expansion of the Timashevsk site, announced in 2008, has equipped the factory to produce Nescafé Gold freeze-dried coffee from raw material processing through to packing.

It will also produce other soluble coffee products including Nescafé Gold Mild, Nescafé Gold Strong, and Nescafé Montego.

The factory, which employs 1,200 people, was already Russia’s first “full-cycle” production site for soluble coffee.

It has produced Nescafé Classic coffee ever since the first phase of its construction was completed in 2005.

Paul Bulcke, Nestlé’s Chief Executive Officer, speaking at the opening ceremony for the expanded factory in Timashevsk today, said, “This factory is a perfect example of our long-term commitment to Russia and its consumers. It highlights our ongoing investment in the country.

“We have invested more than one billion US dollars (around CHF 885 million) into manufacturing and distribution facilities in Russia over the past 15 years."

Mr Bulcke was accompanied by Laurent Freixe, Nestlé Executive Vice President and Zone Director for Europe; and Stuart Irvine, Chief Executive Officer of Nestlé Russia.

They were joined by officials from the Krasnodar region and the Timashevsk district.

Nestlé’s products have been sold in Russia for 140 years.

Today, Russia plays an important role in Nestlé’s European operations, particularly in central and eastern Europe.

The company’s brands in the country include Comilfo, Nescafé, Mega, Maggi, Perrier and Purina.

Currently, Nestlé Russia employs more than 10,000 people and operates 12 production sites, ten sales offices and ten distribution centres.

In August this year, the company announced it will invest more than CHF 38 million to double pet food production at its Purina PetCare factory in Russia’s Kaluga region.

This followed an investment of CHF 60 million in 2010 in a new factory for Maggi products in the Vladimir region.

The first phase of construction is expected to be completed by the end of 2011.