Nestle is to invest CHF160m (US$166.7m) in its ice cream, cereal and soup factories in Egypt over the next three years.
The investment, announced at a press conference in Cairo yesterday (18 January), will create around 500 jobs, the firm said. It follows investments by Nestle totalling CHF170m in Egypt over the last ten years.
The focus will be on increasing production in Egypt, Nestle said, home to the firm’s only facility outside Europe for the production of Movenpick ice cream and a manufacturing base for products including Cerelac infant cereal and Maggi soups and bouillons.
Frits van Dijk, Nestle executive vice president and zone director for Asia, Oceania, Africa and Middle East, said: “We are convinced that our business in Egypt will continue to benefit from the diversity and dynamism of the local population, along with the favourable demographic and economic growth trends. I am very optimistic about the opportunities here.”
Van Dijk confirmed that the company’s “popularly positioned products” (PPP) model would be an important growth driver in the region.
Targeted at emerging consumers, Nestle’s PPPs are adapted to meet their needs in terms of price, accessibility and format, such as single serve packs.
“More people are consuming on the go and so out-of-home consumption is increasing dramatically. We are satisfying the needs of the consumers from all walks of life, from emerging consumers to those looking for premium products,” Van Dijk added.