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Nestlé to invest $154m in new coffee facility in Veracruz, Mexico
Nestlé will invest $154 million in a new coffee plant in Veracruz, Mexico, which will process 20,000 tons of coffee per year.
In a private meeting with Mexico’s newly-inaugurated president Andrés Manuel López Obrador, Nestlé Mexico announced plans for the new facility, which will create 250 direct jobs and 2,500 indirect jobs.
The new factory includes the recirculation of process water, recovery of 100% of the coffee waste to produce energy and the use of 100% renewable electrical energy.
Nestlé said that in the state of Veracruz, its buys raw materials from more than 10,000 producers annually. During the 2017-2018 harvesting season, the company bought 340,000 bags (69kg) of coffee in the state and provided technical support to more than 5,000 coffee producers.
Fausto Costa, CEO of Nestlé Mexico, said: “We are very pleased to share joint objectives with president Andrés Manuel López Obrador and his team. We both believe in supporting young people, where Nestlé has been a pioneer in the country. We also both believe in the strengthening of the Mexican countryside and the importance of accelerating the growth of the southeast region.
“This new investment in Veracruz confirms our commitment to Mexico and its people; the country’s economic stability and competitiveness have been fundamental factors to strengthen us as Nestlé’s fifth largest market worldwide.”
Nestlé’s coffee brands in Mexico include Nespresso, Nescafé and Dolce Gusto.
In its most recent quarterly results, Nestlé saw its net sales rise by 1.4% thanks to the performance of its coffee and infant formula brands.