Nestle earmarks P600M to optimize efficiency of Cagayan de Oro factory

Nestle Philippines’ is allocating P600 million this year to further optimize the utilization efficiency of its Cagayan de Oro factory which manufactures its Nescafe vacuum coffee pouches, stick packs as well as bulk powder packs.

Nestle is also confident that its Nescafe soluble coffee brand will continue to maintain its 98-percent market share despite the growing popularity of specialty coffee stores.

In a recent familiarization tour for newsmen of Nestle Philippines’ Cagayan de Oro factory which produces the 25, 50 and 100 grams Nescafe vacuum pouches as well as the individual two gram stick packs and bulk powder packs, Nescafe Cagayan de Oro factory officials disclosed efforts to help the local coffee industry, its community as well as conserve its environment.

Nestle’s Cagayan de Oro factory, according to its factory manager Rudy P. Trillanes, is one of the lowest cost producer because of its knowledgeable and efficient workforce and high utilization level.

The Cagayan de Oro factory operates 24 hours, seven days a week at almost full capacity.

The Cagayan de Oro factory has increased its production by an average of 15 percent over the last three years.

It purchases 45,000 metric tons of green coffee cherries annually and produces an output of 20,000 MT.

However, only 50 percent of the green coffee cherries the Nestle Cagayan de Oro factory uses are from local coffee growers.

The other 50 percent is imported mainly from Vietnam.

Trillanes explained that local coffee production has dropped drastically, forcing Nestle to source some of its local coffee bean requirement from Vietnam.

Nestle, Trillanes said, is working with local coffee growers to improve their production as well as improve the quality of the local Robusta coffee variety.

The Philippines also produces in smaller quantities the Excelsa and Arabica varieties.