Nestle is to spend BRL120m (US$63.8m) on a liquid milk factory in Brazil in a bid to further build its fledgling business in the category.

The Swiss food giant said yesterday (17 August) that the site, located in Araraquara in Sao Paulo state, would produce the Ninho and Molico brands and is set to go live in November.

"With the new factory Nestle intends to grow in liquid milk segment sector, which the company joined this year. It will have the capacity to process 100m litres of milk per year," a spokesperson told just-food.

Nestle, which has 27 factories in Brazil, also produces Ninho and Molico at another site in Sao Paulo state, in Amparo.