Nestle is taking steps to shore up production at its South African infant formula business as power outages in the country hit production.

South Africa is experiencing the worst power outages since 2008 as state-owned utilities firm Eskom struggles to manage severe power shortages.

A spokesperson for Nestle told just-food the group's current infant formula stock is not at "optimum levels" due to "operational and infrastructural challenges including electricity".

The spokesperson continued: "To avoid shortages we are implementing precautionary measures that include importing from other Nestle operations."

The company is taking steps to stabilise production in South Africa. "Production at all Nestle operations continue albeit with occasional unplanned interruptions. We do have a business contingency plan which involves using generators and we are also investigating other alternative energy sources for the long term."

Nestle has no plans to raise prices in South Africa and will absorb "all costs" associated with importing products within its own value chain, the spokesperson added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.