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September 3, 2021

Nestle eyes ten-fold output increase with Mexico pet-food investment

The Swiss FMCG giant's project will create 200 Nestlé jobs.

Nestlé’s investment in automation and new production lines at a pet-food plant in Mexico will increase capacity by more than ten-fold and create 200 jobs.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The facility in Silao in the state of Guanajuato is equipped to produce 25,000 tons of wet pet food a year and that will now rise to 285,000 tons in the form of dry and wet products, Nestlé giant said in an update this week, as its executives met with local governor Diego Sinhue Rodríguez Vallejo to discuss future investment in the state.

The company first announced the US$160m investment project in October last year for additional production lines, high-tech equipment and digital software. Around 1,700 jobs will be created in the construction phase and a further 200 directly at Nestlé when the new lines come on stream.

Just Food has approached Nestlé to clarify if new buildings will be involved and when work will begin and end on the project.

Manufacturing 125 varieties of pet-food products for Nestlé’s Purina brand, the Silao factory first opened in 2015. Some of the output is exported to countries in Central America and the Caribbean under brands such as Pro-Plan, Campeón, Dog Chow, Cat Chow, and Beneful, the company said.

 

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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