Swiss multinational Nestlé has announced plans to allocate 6 billion reais ($1.2 billion) for food and drink production in Brazil.
A series of investments is set to take place between 2023 and 2025.
These initiatives aim to promote “business growth, portfolio transformation, and operational efficiency” within Nestlé’s chocolate, coffee, pet food, and nutrition categories in the country. Nestlé’s nutrition business encompasses products such as infant formula and supplements.
When inquired about additional details regarding the investment, a spokesperson from Nestlé mentioned that the expenditure will also be directed towards expanding production capacity, constructing new processing equipment, and enhancing “innovation in products and packaging.”
Nestlé chose not to disclose the specific amount of funds allocated to each business area.
The company has not clarified the number of new jobs it plans to generate with the allocated funds.
Nevertheless, it verified that the previously announced $2.7 billion reais investment in its Brazilian chocolate and biscuit lines, disclosed in August, constitutes a portion of the overall $6 billion reais sum.
The funding alone was reported to be three times the sum invested in the country over the past four years.
The majority of the $2.7 billion reais was anticipated to be directed towards Nestlé’s facilities in Caçapava and Marília in São Paulo, as well as Vila Velha in Espírito Santo.
The Caçapava site is responsible for producing the KitKat brand, while the Marília plant is dedicated to biscuit manufacturing. Vila Velha serves as the production site for Garoto chocolates.
Nestlé expanded its presence in Brazil this year by acquiring a majority stake in the “high-end” national chocolate group, Grupo CRM.
In February 2022, Nestlé revealed a significant capital expenditure increase in the country, expressing its intention to invest over 1.8 billion reais that year in sectors such as production, technology, and distribution.
As per Nestlé’s annual report for 2022, the company operates 12 factories in Brazil, covering a range of sectors including milk and ice cream, beverages, pet food, confectionery, prepared dishes and cooking aids, as well as its nutrition and Health Science business.
The conglomerate in the food and beverage industry noted “robust double-digit growth” in its sales within Brazil during the initial nine months of 2023, with sustained momentum observed in confectionery and infant cereals.
In the Latin America region, organic growth rose by 10%, and reported sales exhibited a year-on-year increase of 5.7%, reaching SFr9.1 billion ($10.4 billion).