AFRICA: Nestle invests in southern African production upgrade
Nestle region chief confident on outlook for southern Africa
Nestle will spend US$10m expanding its operations in southern Africa - a region that includes Zimbabwe, Zambia and Malawi - this year.
Between 2011 and 2013, the Swiss company invested $20m in the region, where it manufactures and distributes powdered milk and breakfast cereals.
Nestle enjoys a dominant position in these sectors, Nestle Zimbabwe executive director Farai Munetsi told just-food.
Cerevita breakfast cereals are popular in Zimbabwe, Munetsi said. Solid milk products under the Cremora and Nido brands, as well as the Ricoffy roasted coffee brand, are are also witnessing strong demand in the subregion.
This year's capital expenditure will be spent on upgrading its factory equipment, Munetsi revealed.
"The major capital expenditure for 2014 will be the upgrading of the milk powder drying plant to operational efficiencies. The project is estimated to cost close to $10m," said Munetsi.
Independent Zimbabwe-based economist Moses Moyo warned "tough economic conditions... could exert pressure on spending power and prospects for further growth" in volumes.
However, Munetsi brushed off such concerns. Nestle's investments mean the company is strategically positioned to rise above current challenges, Munetsi said.
"The company is confident of meeting its revenue targets despite the tough macro-economic environment. This is mostly due to the increase in capacity and operating efficiencies after the investments," Munetsi said.
Nestle said key raw materials which include milk, maize, flour, wheat and sugar were locally produced. It supplements these with imports from its neighbouring countries such as Zambia and South Africa.
Nestle S.A. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings an...
Synopsis Canadean's "Nestle India Limited : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
- What US companies might Nomad Foods buy?
- Challenges for General Mills with The Good Table
- Why investors are concerned about water risk
- Competition intensifies among UK burger chains
- Greek crisis: The impact on shopper behaviour
- Just Mayo under fire from US FDA after complaint
- B&G Foods "front-runner for Green Giant"
- FrieslandCampina H1 earnings up despite flat sales
- Brownes Dairy "attracts eight suitors"
- General Mills to work on artificial ingredients
- Management briefing: just-food’s industry outlook for 2015
- Food Flavourings & Colourings (UK) - Industry Report
- Nestle USA, Inc.: Consumer Packaged Goods - Company Profile & SWOT Analysis
- Bakery Market in Japan: Forecast, and Market Analysis 2015-2019
- Probiotic Ingredients Market by Function, Application, End Use, Ingredient, and by Region - Global Trends & Forecast to 2020