Nestle invests USD 675 million to build Arizona factory, creating 350 jobs
March 10, 2022 at 05:15 am EST
Share
Nestle USA announced a USD 675 million investment to build a new beverage facility in Glendale, Arizona. As the current leader in the creamer and flavored milk categories, Nestle's investment strengthens its market position and enhances its manufacturing capabilities to meet increased consumer demand for its products.
The factory will produce high-quality creamers for Nestle's category-leading portfolio, including the Coffee mate, Coffee mate natural bliss, and Starbucks brands, with the ability to expand to additional beverages in the future.
'Beverages play an increasingly important role in the lives of consumers, a trend that's been accelerated by the pandemic and is expected to continue to grow. This investment illustrates our continued commitment to leading and growing categories where we play, providing consumers with a variety of high-quality, innovative products to meet their needs,' said Daniel Jhung, President of Beverage, Nestle USA. 'We appreciate the partnership from state and local officials and look forward to contributing to the local economy and Glendale community for many years to come, including through the creation of over 350 jobs.'
Arizona provides an ideal environment for Nestle's operations, offering close proximity to customers and consumers in the western U.S., reducing transport timelines and emissions.
'Nestle selecting Arizona is great news,' said Governor Doug Ducey. 'Manufacturing in our state is surging and Nestle's decision adds to this momentum, as well as bringing diversification to this fast-growing sector of our economy.'
Over the past two years, Nestle in the U.S. has invested nearly USD 3 billion to enhance its manufacturing footprint and in-house capabilities - from new factories and expansions to operational changes that help meet its sustainability targets. The new Glendale facility is set to open in 2024, joining Nestle USA's robust network of 14 existing food and beverage factories across the U.S.
'We are honored to welcome the largest food and beverage company to Glendale's New Frontier,' said Glendale Mayor Jerry Weiers. 'Their commitment to long-term positive impact aligns directly with the City's vision and we look forward to having them join our community. The significant impact of their fiscal investment and the jobs created will be seen for years to come.'
This facility will be designed with sustainability at the forefront including: a water recycling process to reduce water usage, zero waste to landfill and fully recyclable product packaging made from food-safe recycled plastic. Also, in support of the company's ambition for zero environmental impact in its operations by 2030, the facility will strive for 100% renewable energy by 2025.
Nestle will bring more than 350 jobs to the community - hiring for professional staff, manufacturing and production leaders, technical staff, engineers and more.
Nestlé S.A. is the world's leading agri-food group. Net sales break down by category of products as follows:
- powdered and liquid beverages (26.7%): soluble coffees (Nescafé and Starbucks brands), coffee in capsules (Nespresso), chocolate drinks (Nesquik, Milo, etc.), tea drinks (Nestea), etc.;
- pet food (20.3%): brands such as Purina, Friskies, Felix, etc.;
- pharmaceutical, nutrition and well-being products (16.4%): nutritional supplements (Resource, Boost, Nutren, Optifast, Peptamen brands, etc.), infant and maternal nutrition products (NAN, illuma, Cerelac, Nido, Gerber), ketogenic beverages (BrainXpert), (Nesquick, Fitness, Cheerios, Lion, etc.), etc.;
- ready meals and seasoning products (12.5%): frozen and chilled dishes (Lean Cuisine, Hot Pockets and Stouffer's brands), soups (Maggi), etc.;
- dairy products and ice cream (11.8%): powdered milk, sweetened condensed milk, yoghurt and cream desserts, ice cream (Nido, Nesvita, Carnation, La Laitière, Coffee Mate, Nestlé Ice Cream, Dreyers, Häagen-Dazs, Extrême brands, etc.);
- chocolates, sweets and biscuits (8.7%): Kit Kat, Smarties, Cailler, Terrafertil, etc. brands;
- bottled waters (3.6%): Nestlé Pure Life, Vittel, Perrier, S. Pellegrino, etc. brands.
Net sales are distributed geographically as follows: Switzerland (1.2%), France (3.8%), the United Kingdom (3.8%), Germany (2.4%), Europe (12.8%), the United States and Canada (35%), China (5.9%), Asia and Oceania (21.4%) and Latin America (13.7%).