Nestlé Announces Investments in South Africa and Mexico

25 Sep 2014 --- Nestlé South Africa has announced a new five-year, ZAR 2 billion (CHF 170 million) investment plan in the country and the appointment of Ian Donald as the company’s new Chairman and Managing Director.

The new investment will be focused on capacity building, general capital refurbishment, biomass boilers and converting Nestlé’s Mossel Bay dairy factory to a water neutral one. The new investment is in line with Nestlé South Africa’s existing investment plan.

“Nestlé believes in Africa as an investment destination and part of our ongoing investment will include increasing capacity for our coffee factory in Estcourt, Kwa-Zulu Natal with the aim of creating a coffee hub for the region,” said Donald.

Donald succeeds Sullivan O’Carroll who will retire at the end of September 2014. A South African citizen who has been with Nestlé for more than 40 years, Donald brings back to the country a wealth of experience in emerging markets. Prior to his return to South Africa, Donald was Market Head for Nestlé in the Equatorial African Region where he was responsible for 21 countries.

Nestlé South Africa is one of the country’s biggest food and beverage companies and Nestlé’s second biggest market in Africa.

The five year investment plan is expected to contribute significantly towards rural development in the country and enhance the company’s operations via increased efficiency and capacity.

Meanwhile Nestlé Mexico has announced plans to invest 700 million pesos (CHF 50m) over the next six years to increase milk production in the country.

The planned investment is part of Nestlé’s ongoing efforts to build close links with dairy farmers around the world in order to better understand the practical problems that affect their businesses and, ultimately, Nestlé’s over the long term.

Under the commitments announced, Nestlé Mexico will invest 400 million pesos to finance production and infrastructure.

Another 300 million pesos will be invested in providing technical assistance in the milk and whey supply chains in Mexico. Whey is a lactose and protein by-product from the cheese-making process.

Mexico is one of around 30 countries globally where Nestlé buys milk directly from producers. Nestlé Mexico is the country's third biggest milk buyer. The company has been buying milk directly from dairy farmers in Mexico since 1935.

Nestlé works with over 400,000 dairy farmers around the world as part of its Farmer Connect direct sourcing programme.