Nestlé launches creamer factory

Nestlé launches creamer factory

FMCG SUPPLIER NEWS

Business Day - Feb 3rd, 09:50

Nestlé SA brought its manufacturing facility count in SA to 10 with the launch of a new coffee creamer factory yesterday. 

The new Potchefstroom facility is expected to increase the production capacity of Nestlé’s coffee creamer and offered the company an opportunity to develop quality, affordable products, the company said yesterday.

The world’s biggest food company is looking to tap into the growing demand as consumers in Africa become wealthier.

Cremora would be made at the plant, Nestlé said, adding much-needed capacity to the existing creamer manufacturing facility in Babelegi, near Pretoria.

"We are proud to launch Nestlé Potchefstroom … as this further demonstrates the company’s ongoing commitment to foreign direct investment," Nestlé chairman and MD Sullivan O’Carroll said. "This launch speaks to the company’s need for increased local manufacturing in order to respond to increased demand of Nestlé coffee creamer.

"It is also in line with our long-term commitment to business sustainability and economic development in SA and the rest of the African continent," he said.

The launch follows Nestlé SA’s recent R106m acquisition of Potchefstroom-based Specialised Protein Products. Nestlé said a further R150m would be spent on this facility over the next 18 months for general upgrading. The acquisition included the absorption of 142 employees.

This purchase will increase the production capacity of Nestlé’s non-dairy creamers and give the company an opportunity to develop good quality and affordable soya-based products, it said.

Consumer goods companies are increasingly seeking to tap into the growing African market of 1-billion people. Consumer spending is set to reach $2,6-trillion by 2020, according to Ernst & Young.