Nestlé Philippines Inc. does not plan to close any of its manufacturing facilities in the country, the company said, dismissing earlier statements of its top official who suggested otherwise.
The food and beverage firm made the clarification on Friday after an official told reporters last week that the company might transfer its local coffee manufacturing operations abroad partly due to the high cost of local sugar.
“Nestlé Philippines is not planning to close any of its manufacturing facilities in the Philippines. Coffee under our Nescafé brand remains to be a core pillar for us and we are committed to support the local coffee industry and our coffee farmers to growth,” the statement read.
This develops after company senior vice president Ernesto Mascenon said that Nestlé, the lone coffee manufacturer in the country, has lately been at a “disadvantage,” especially when compared to companies that import their coffee products instead.
Local sugar prices have recently become more expensive compared to prices in the world market, a development which prompted Nestlé to ask lawmakers for a tax perk for companies that use local agricultural products.
The company wanted lawmakers to include this incentive under the second tax reform package of the Duterte administration, which aims to lower corporate income tax while rationalizing tax incentives.
The situation might force the company to consider its options, including moving its coffee manufacturing here to Indonesia, Vietnam or Malaysia and just import instead, the official said.
Although Mascenon’s statement centered only around the company’s coffee operations, Nestlé’s recent statement clarified that the company, which has been here for more than a century now, was not going anywhere.
“We have been operating in the Philippines for 107 years now, and we look forward to doing business here in the next 100 years. Nestlé is here to stay,” the statement read.