Nestlé allots P5 B for expansion

MANILA, Philippines - Nestle Philippines is alloting another P5 billion next year to further expand and upgrade its manufacturing facilities.

“The P5 billion (will be spent) across our organization for the Philippines,” Nestle Philippines chairman and chief executive officer John Miller said in a press conference yesterday.

Nandu Nandkishore, Nestle S.A. executive vice president for Zone Asia-Oceania-Africa said in the same event the planned investment for next year is in line with the firm’s commitment to the Philippines.

“The P5 billion is a continuation of what we have been doing in the past years,” he said.

In the five years from 2008 to 2012, Nestle has invested close to P16 billion in the country, with around 86 percent spent for expansion of production capabilities amid growing local market demand, and the balance going to sales infrastructure, distribution and information technology.

Nandkishore said the firm would continue investing in the Philippines to grow its business here as it keeps pace with the growth of consumer demand.

Nestle has five factories in the country, located in Cagayan de Oro, Cabuyao, Laguna, Lipa, Batangas, Pulilan, Bulacan and Tanauan, also in Batangas.

The fifth factory, the Tanauan facility in Batangas, which had a P5-billion investment, just started the production of Coffeemate Non-Dairy Creamer and Bear Brand Powdered Milk yesterday.

David Findlay, executive vice president and technical director at Nestle Philippines said in the same event that prior to the opening of the Tanauan facility, the firm was importing Coffeemate from Thailand and Mexico, while the Bear Brand powdered milk is produced in Cagayan de Oro.

He said the firm intends to expand the Tanauan plant depending on how the market for the products develops.

“We hope to be close to the annual capacity next year,” he said.

The Tanauan facility has an annual capacity of 60,000 metric tons and will employ 214 workers.

Findlay said the firm also plans to increase the use of locally grown ingredients for its production if there is adequate supply.

Nestle is working with the Department of Agriculture, farmers and the private sector for increased output of some crops like coffee beans which are used in the firm’s production.

Last year, the company’s sales stood at P103 billion, up from P94 billion in 2010.