NESTLÉ plans expansion of PH factory output, product line

The Philippine unit of Switzerland-based global food giant Nestlé S.A is looking at the further expansion of its P170-billion business in the country, including ramping up the manufacturing capacity of its existing factories and launching new products.

Nestlé Philippines, Inc. chair and chief executive officer Kais Marzouki told reporters last week that while they have no current plans to add more manufacturing plants, they will continuously expand the output of these facilities.

“More than 90 percent of what we sell (in the Philippines) is made here and at least two to three percent of our sales here is reinvested in (our Philippine factories),” Marzouki said during a roundtable meeting with the press.

The company currently has five production plants in the Philippines, located in Laguna, Cagayan de Oro, Bulacan, as well as another two in the province of Batangas.

Nestlé S.A chief executive officer Mark Schneider said they were “deeply committed” to the Philippine market, citing its strong performance which continues to grow.

“We are also particularly interested in manufacturing and sourcing more from the Philippines. So, for example, sourcing more coffee from the southern Philippines is a key initiative of ours,” Schneider said.

“We have a wonderful coffee market here. We’re working with farmers on the ground to make sure that more coffee is produced locally so that there is less need for imports into this country,” he added.

Further, Schneider said that they plan to launch more products in the Philippines, particularly in their dairy product segment, as well as in nutrition for aging people.

“Those are areas where we believe we can make good contributions over time. Typically, we don’t have one portfolio for the entire world. We target specifically the country where we see the greatest opportunity,” said the Nestlé executive who was in the country for a short visit. INQ