Nestlé ramps up coffee creamer and flavored milk investment with US$675M US facility

10 Mar 2022 --- Nestlé USA is planning a US$675 million investment to build a new beverage facility in Arizona, US, to boost its market position in the creamer and flavored milk categories.

The Arizona plant will produce high-quality creamers for Nestlé’s portfolio, including the Coffee mate, Coffee mate natural bliss, and Starbucks brands, with the ability to expand to additional beverages in the future.

Nestlé says the investment strengthens its market position and enhances its manufacturing capabilities to meet increased consumer demand for plant-based products and the high-growth coffee category.

Consumer demand soars for plant-based products
The hot and cold beverages space has been boosted throughout the COVID-19 pandemic as people spend more time at home. 

Consumers are increasingly demanding plant-based options.“Beverages play an increasingly important role in the lives of consumers, a trend that’s been accelerated by the pandemic and is expected to continue to grow. This investment illustrates our continued commitment to leading and growing categories where we play, providing consumers with a variety of high-quality, innovative products to meet their needs,” says Daniel Jhung, president of beverage, Nestlé USA. 

Nestlé and Starbucks initially unveiled a range of non-dairy creamers, an innovation to come out of their global coffee alliance, which is focused on bringing consumers new ways to enjoy coffee at-home in the summer of 2020.

The Starbucks Non-Dairy Creamers are crafted with almond milk and oat milk blend and create a rich and smooth texture with flavors inspired by customer-favorite handcrafted beverages.

Arizona provides an ideal environment for Nestlé’s operations, says the Swiss food giant, because of its proximity to customers and consumers in the western US, reducing transport timelines and emissions.

Ramping up investments
Over the past two years, Nestlé in the US has invested nearly US$3 billion to enhance its manufacturing footprint and in-house capabilities – from new factories and expansions to operational changes that help meet its sustainability targets. 

The Arizona plant will produce high-quality creamers for Nestlé’s portfolio, including the Coffee mate, Coffee mate natural bliss, and Starbucks brands.The factory will be 630,000 sq ft and will sit on 143.6 net acres of land in Glendale, US.

The new Glendale facility is set to open in 2024, joining Nestlé USA’s network of 14 existing food and beverage factories across the country. It will be the company’s most technologically-advanced factory and distribution center, utilizing innovative digital tools and offering flexibility to meet the changes in consumer demand. 

The factory will be 630,000 sq feet and will sit on 143.6 net acres of land in Glendale.

The plant will be sustainably designed, including a water recycling process to reduce water usage, zero waste to landfill and fully recyclable product packaging made from food-safe recycled plastic.

Also, in support of the company’s ambition for zero environmental impact in its operations by 2030, the facility targets 100% renewable energy by 2025.

Edited by Gaynor Selby