Nestlé sets expansion of plant in Batangas

By Ma. Elisa P. Osorio (The Philippine Star)
Updated November 24, 2010

MANILA, Philippines - Nestlé Philippines is planning at putting up two major facilities in its Batangas plant in the next 10 years in addition to a new P4.3-billion factory that will produce powdered milk and non diary coffee creamer.

President Aquino yesterday led the groundbreaking for the P4.3-billion factory in Tanauan, Batangas.

The factory, which is expected to be completed in March 2012, is situated on a 27-hectare site and will produce Coffeemate Non-Dairy Creamer and Bear BrandPowdered milk drink. Once the factory is operational, the Philippines will become the Coffeemate hub in Asia. Among the Asian countries, the Philippines is the largest consumer of Coffeemate.

Nestlé Philippines Chairman and CEO John Miller said that with the continued growth in demand for the two brands, both of which are market category leaders, the factory will increase much-needed manufacturing capability. The domestic market demand in 2010 for Bear Brand and Coffeemate is projected to grow by 19 percent and eight percent, respectively, with Bear Brand exports under the brand name Everyday seen to grow by 38 percent.

“In 2011, Nestlé will celebrate one hundred years in the Philippines. One hundred years of service to the Filipino consumer is a great source of pride within our company and it is fitting that most of the Tanauan factory’s construction will take place during Nestlé Philippines’ centennial, signifying our continuing commitment to the country,” Miller said.

“Our investments, in line with our corporate thrust of creating shared value (CSV) for all stakeholders in society, give us the confidence to look forward to the next 100 years of nurturing Filipino families by offering Nutritious, Health and Wellness products,” he added.

The Tanauan factory, which will contribute to the growth of the domestic economy, will initially provide direct employment for a new workforce of 170, while creating many other jobs in businesses supplying the facility with raw materials and services.

Apart from the new factory’s construction, Nestlé is also continuing to invest in its four existing facilities in Cagayan de Oro, Cabuyao, Lipa and Pulilan, especially in technology and equipment to enable the company to meet increasing demand for its products.
 Nestlé’s local investments in the past five years have totaled close to P 10 billion, with about 80 percent allocated for existing facilities to generate higher efficiencies and to protect the environment, while the balance 20 percent was deployed into sales infrastructure, distribution, and IT systems.

In 2009, Nestlé Philippines produced almost half a million metric tons of coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream, chilled dairy, and breakfast cereals.

The Nestlé business in the Philippines has grown in the last five years by an average of P 4.6 billion annually. With sales of almost P 86 billion in 2009, the company paid some P10.6 billion in taxes, a 20 percent increase over 2008.