Nestlé allots P1.3B for new facilities

Nestle Philippines Inc. has earmarked P1.3 billion for its production facilities this year. 

"Our investments, expansion and our exports demonstrate our continuing confidence and commitment to support long-term economic growth in the country," Nestle Philippines chairman and chief executive officer Nandu Nandkishore said in a press conference.

Nandkishore said they expect sales to grow by six percent to P73.25 billion this year from P69.1 billion a year ago.

"We would like to grow in line with the gross domestic product (GDP) growth," Nandkishore said. In 2006, sales were six percent better than the previous year and they are counting on the trend to continue this year.

As for their investments, Nandkishore said the conglomerate’s total investment in the country has reached almost P10 billion in the last five years. "Our investment last year was a little more than that. We average P2 billion per year."

The investments earmarked for 2007 will be allocated for acquisition of manufacturing equipment and supporting infrastructures including laboratories and automated process control systems. This, Nandkishore said, will help Nestle Philippines improve performance, quality and competitiveness.

According to him, they expect the demand for Milo, the company’s leading chocolate flavored drink energy, to continue to grow both locally and in the Asian market. In order to address this demand, he said investments are being made to increase Nestle’s capacity to produce milk.

Likewise, he said production capacity for breakfast cereals and coffee are being upgraded to maximize output and increase productivity.

Nandkishore said Nestle Philippines is developing new products but refused to give details about the products being conceptualized.

Of the P69.1 billion sales, Nandkishore said nine percent or P6.5 billion were exported. Three of the four Nestle plants produce food products for other Asian markets while the Aurora Blvd. plant in Quezon City supplies ice cream and chilled products for the local consumers.

Dubbed as the ASEAN Supply Center, the three plants in Cabuyao, Cagayan de Oro and Lipa, produce export quality products.

The Cabuyao factory makes infant and adult nutrition milks, the Lipa, Batangas factory produces breakfast cereal and beverages while the Cagayan de Oro factory is for filled milk powder and coffee.

The Nestle factories manufacture products under brands Nido, Bear Brand, Nesvita, Cerelac, Milo, Chuckie, Nestea and Nescafe.