Nestlé Invests MXN 5,000 Million in Mexico

Thanks to the improvement of the flexible manufacturing capacity in its Toluca and Querétaro plants, Nestlé will be able to further customize its products to specific consumer needs such as Popularly Positioned Products (PPP) and out-of-home (OOH) formats.

2 Feb 2010 --- Nestlé announced it will invest 5 thousand million pesos (USD 390 million) in Mexico over the next three years.

The series of investments are aimed at strengthening Nestlé’s production capacity and infrastructure in Mexico. Paul Bulcke, Nestlé CEO, announced the expansion plans at the World Economic Forum in the presence of Felipe Calderón, President of Mexico, Gerardo Ruiz Mateos, Minister of Economy, and Bruno Ferrari, CEO of ProMéxico.

Mr Bulcke said: “2010 marks the 80th anniversary of Nestlé in Mexico. Our presence in this important country includes 14 state of the art factories, over 6,000 employees, hundreds of local business partners, and a distribution network unparalleled in the industry. Our brands such as Abuelita, Nido, Carnation, and Nescafé are not only staples but part of important family traditions. Our continued investment in Mexico demonstrates our commitment to delighting Mexican consumers every day.”

A major part of the 5 thousand million pesos will be invested in the Nescafé soluble coffee plant in Toluca (State of Mexico). Nestlé will increase the facility’s capacity by 40%, which will make it the biggest soluble coffee plant in the world.

Thanks to the improvement of the flexible manufacturing capacity in its Toluca and Querétaro plants, Nestlé will be able to further customize its products to specific consumer needs such as Popularly Positioned Products (PPP) and out-of-home (OOH) formats. The company will also invest in cutting-edge technology to increase the nutritional value of its milk products such as Nido and Svelty. In addition, investment will be used to strengthen Mexico’s regional supply position in Latin America where it exports brands such as Nesquik, Coffee-Mate and Maggi.

In line with Creating Shared Value, Nestlé’s way of doing business by not only creating value for its shareholders but also for society, the Company will install a coffee waste boiler in its Toluca plant. This boiler will generate energy from the waste of the soluble coffee manufacturing process. Nestlé will also replace artificial lighting systems in the production and distribution areas with the efficient use of solar light.

It is very important to foster investment by companies that generate considerable revenue for a country. In this way, Nestlé reinforces its commitment to Mexico by bringing its total investment to USD 1 billion dollars from 2008 to 2012, promoting employment, technological innovation and the implementation of initiatives to improve Mexicans’ nutrition, health and wellness.