Nestlé Invests PHP 4.3 Billion in the Philippines

John Miller, Nestlé Philippines Chairman and CEO announced the CHF 98 million investment from the company's head office in Makati City.

6 Jul 2010 --- Nestlé announced it will invest PHP 4.3 billion (over CHF 98 million) to construct a new Coffee-mate and Bear Brand factory in the Philippines.

Construction on a 27-hectare site in Tanauan, Batangas, which will begin this month, is expected to be completed in March 2012.

Producing Coffee-mate Non-Dairy Creamer and Bear Brand Powdered Milk Drink, the facility aims to spur economic growth in the area, directly employ a new work force of 170, and generate hundreds of jobs in other sectors that will provide the facility with raw materials and services.

John Miller, Chairman and CEO for Nestlé Philippines, who announced the investment at a press conference in the company’s head office in Makati City, said: “Nestlé has been present in the Philippines as a part of everyday life for 99 years. The investment in the Tanauan factory starts a new chapter in Nestlé’s commitment to the country, as we look forward to the next 100 years of nurturing Filipino families by offering healthy and tasty products.

“We believe this investment is a clear demonstration of our full confidence in the Philippines. It is timely as the country restates its commitment to accelerate economic growth. As always, our strategy is guided by our belief in Creating Shared Value for all stakeholders.”

Mr Miller added that demand for the two brands both of which are market category leaders continues to grow, and the investment in the new factory will address the need to increase production. In 2010 alone, the domestic market demand for Bear Brand and Coffee-mate is projected to grow by 19% and 8%, respectively. While export of Bear Brand under the brand name Everyday is also expected to grow by 38% this year.

In addition to this latest investment, Nestlé is also continuing to invest in its four existing factories in the Philippines, focusing on technology and equipment upgrades in order to meet growing demand for its products. For example in 2009, Nestlé produced almost half a million metric tonnes of products including coffee, milk, beverages, food, infant nutrition, ice cream, chilled dairy, and breakfast cereals.

Nestlé’s four manufacturing facilities in the Philippines are:

*The Cagayan de Oro factory which manufactures Nescafé and Bear Brand.
*The Cabuyao factory which manufactures Nido, Nesvita, Nan, Nestogen, Bear Brand Choco, Nestlé All Purpose Cream, Ready-to-Drink Milo, Bear Brand Sterilised and Chuckie
*The Lipa factory which produces Milo and Nestlé Breakfast Cereals; and
*The Pulilan factory which manufactures Nestlé Ice Cream and Chilled products

The Cabuyao, Cagayan de Oro and Lipa factories also serve as the Nestlé Group’s Export Centres for infant nutrition, filled milk powder and breakfast cereals. The factories manufacture these various products for other Nestlé markets abroad.

The Company’s investments in the Philippines during the last five years stand at close to PHP 10 billion. Some 80% of the investments have been deployed to its existing factories to generate higher efficiencies, create additional capacities, and to safeguard the environment. The balance of 20% was spent on sales infrastructure, distribution and information systems.