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The world’s leading food processing firm Nestlé announced that its subsidiary Nestlé Mexico plans to invest US$700 million in building a new coffee processing plant in Veracruz and modernising 16 sites in Mexico. The fresh investment will generate 400 direct and 4000 indirect jobs in the country.

The company’s investment will help increase productivity, improve processes, and expand capacity. The new Veracruz plant will process 20,000 tons of green coffee annually and will operate under a system of operational management meeting global quality and safety standards. The company’s factory will implement technologies for the processing of coffee and the reduction of water and energy consumption.

Food and beverages are core to Nestlé and they aim to capture premiumization opportunities and, at the other end of the spectrum, offer affordable, high-quality nutrition. Nestlé is also well-positioned to build and share nutrition knowledge from birth to healthy aging, and benefit from increased interest in nutrition to support good health. Nestlé has identified coffee amongst five high growth food and beverages categories with attractive growth rates, the others are petcare, nutrition, water and Nestlé Health Science. Together, they represent more than 55% of sales and 60% of underlying trading operating profit and these categories receive particular emphasis from a capital allocation standpoint, with significant investments in R&D, marketing, capital expenditure and external growth whenever appropriate.

In December 2019, Nestlé had undertaken two major disinvestments:

(a) Nestlé reached an agreement to sell its USA ice cream business to Froneri, for a transaction value of US$4 billion. Froneri is an ice cream-focused joint venture between Nestlé and PAI Partners. Froneri was formed in 2016 after PAI Partners merged with Nestlé’s European ice cream business in 20 countries.

(b) Nestlé announced that it agreed to sell a 60% stake of Herta to Casa Tarradellas. Nestlé will create a joint venture with Casa Tarradellas for Herta with their respective stakes of 40% and 60%. The joint venture includes Herta charcuterie (cold cuts and meat-based products) available in six European countries. The Nestlé will retain and develop its existing Herta vegetarian business, in line with its increased focus on plant-based offerings.

In July 2019, Nestlé had announced a collaboration with an innovative blockchain platform provider OpenSC, that allows consumers to track their food right back to the farm. With this collaboration, Nestlé becomes the first major food and beverage company to pilot open blockchain technology.

 About Nestlé

Nestlé is the world’s largest, most diversified food and beverages company. Established over 150 years ago, Nestlé employs more than 300,000 worldwide. Nestlé is dedicated to advancing nutrition, health, and wellness in a way that is sustainable and responsible and the company is a leader in many of the fastest growing food and beverages categories including coffee, petcare, bottled water and infant formula. Nestlé has some of the world’s most recognisable brands, with household names like Nescafé, global icons like Perrier and local favourites like NaturNes and Milo.

Nestlé’s strengths include global reach, an attractive product portfolio, powerful brands, industry-leading R&D and talented workforce. Nestlé has added substantial shareholder value with dividends increasing in each of the past 24 years and is on path of achieving mid single-digit organic growth by 2020.

Global Presence

Nestlé has a global footprint with products sold in 190 countries. Nestlé focuses on expanding its presence in high-growth regions. Emerging markets represent more than 40% of sales. In most of the emerging markets, Nestlé has been present for many decades and our brands enjoy a high level of trust and are rightly viewed as local.

Nestlé currently has more than 400 factories in 85 countries. Regional distribution of factories:

(a) Americas – Countries with largest number of factories in region are USA (77), Brazil (17) & Mexico (13), other countries in the region with large number of factories are Argentina, Canada, Chile, Colombia & Venezuela.

(b) Asia, Oceania & Sub-saharan Africa – Greater China has 30+ factories, other countries in the region with large number of factories are Australia, India, Malaysia, Thailand, Vietnam, South Africa & Philippines

(c) Europe, Middle East & North Africa – Countries with largest number of factories in region are France (19), Germany (14), Switzerland (11), UK (10) and Spain (10),  other countries in the region with large number of factories are Israel, Italy, Poland & Russia.

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