Nestlé is to invest €6.5m ($6.9m) in its production of white chocolate at its plant in San Sisto in Italy.
The move will see the factory becoming the sole producer of the Galak and Milkybar white chocolate brands for markets in Europe.
Nestlé said it will “modernise” a white chocolate production line at the site. The updated line will be operational from “mid-2024”.
“The packaging phase of the bars will be strengthened with more advanced and high-performance technology,” Nestlé said in a statement.
Nestlé expects a 15% increase in production volumes from 2025 compared to current production.
Just Food asked for further details, including which other plants make Galak and Milkybar white chocolate.
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“The San Sisto plant plays an increasingly central role in the growth strategy of the Nestlé group, as demonstrated by this new investment in the white chocolate line, which will contribute to making the factory even more competitive within the group on an international level,” Marco Travaglia, the CEO of Nestlé’s business in Italy, said.
Nestlé has been present in Italy for 110 years this year. According to the company’s 2022 annual report, it has seven factories in the country, including for bottled water, confectionery, culinary foods and pet food.
Earlier this month, the Swiss giant struck a deal to buy a majority stake in Brazil-based chocolate business Grupo CRM.
The direct-to-consumer business has more than 1,000 chocolate boutiques in Brazil run under the Kopenhagen and Brasil Cacau brands.
Pizza is among the products Nestlé sells in Italy. In April, the group set up another venture with private equity firm PAI Partners, establishing a business to house its frozen pizza assets in Europe.
Nestlé will “retain a non-controlling stake with equal voting rights alongside PAI Partners”, the Buitoni pizza maker said in a statement.