Nestlé to Invest EUR 45 Million in Frozen Pizza Factory in Germany

This marks the groundwork for a new state-of-the-art factory that will ensure Wagner can meet increasing consumer demand for pizza for years to come.

Nov 21 2011 --- Nestlé is strengthening its frozen pizza business by extending its Wagner factory in Germany.

The new EUR 45 million extension to the factory, located in the city of Otzenhausen, will boost production of Wagner branded frozen food products such as Big Pizza, Piccolinis and Die Backfrische.

Production is set to increase from 70 million products to 350 million products annually once the new extension is fully operational in 2013.

Products include pizzas such as reduced fat, wholegrain, lactose-free and organic varieties which are produced without flavourings or additives.

Expanding globally

The new extension is Nestlé’s latest investment to expand its frozen pizza business globally.

Nestlé added brands DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio to its portfolio in the United States and Canada, after acquiring Kraft Foods’ frozen pizza business last year.

The purchase makes Nestlé the leader in the North American frozen pizza category, where the company only had a minor presence before.

Nestlé entered a joint venture with Wagner in 2005 and increased its stake in the company to 74% in 2010.

Nestlé also bought the Buitoni pizza, pasta and sauce business in 1988.

Ideal partner

Wagner’s turnover has increased by 51% since it partnered with Nestlé.

"Nestlé has proven to be the ideal partner to develop our business worldwide and to develop it in new markets. Today we are one of the largest manufacturers of frozen pizzas in Europe,” said Gottfried Hares, Managing Director for Wagner, at a groundbreaking ceremony to mark the start of the construction.

"We are proud to partner with Wagner. Our businesses complement each other and our partnership will continue to be successful,” added Gerhard Berssenbrügge, Chief Executive Officer of Nestlé Germany.

Werner Bauer, Executive Vice President for Nestlé and Chief Technology Officer, emphasised the progress that Nestlé, together with Wagner, has made in the pizza category.

“We are not here just to look at a building site. We are here to envisage the future,” said Mr Bauer.

“This marks the groundwork for a new state-of-the-art factory that will ensure Wagner can meet increasing consumer demand for pizza for years to come,” he added.

Wagner is continuing to meet increasing consumer demand as one of the leading suppliers in the German frozen pizza sector.

Continue success

Nestlé and Wagner will also continue to share technology and expertise.

Wagner introduced its Stone Oven pizza over two decades ago and has continued to bring new innovative products to consumers.

Nestlé’s new Buitoni Piccolini pizzas use the dough technology that Wagner developed in the late 1990s.

In the United States, Nestlé’s DiGiorno pizzas use the same self-rising crust that is used in Wagner’s Backfrische pizzas.

“On one hand we have played our part in contributing to Wagner’s success, and at the same time, Wagner has had a tremendous impact on our pizza business for our brands in Europe, the United States and Canada,” added Mr Bauer, Chief Technology Officer for Nestlé.