Nestlé South Africa has inaugurated a new ZAR 1.2 billion (€74.4 million) coffee manufacturing plant in Estcourt – 90 miles northwest of Durban – amid rising demand from consumers in the region for the company’s coffee products.
The expansion takes the amount of inward investment made by Nestlé in South Africa to almost €180 million in the last five years. It includes the construction of a waste water treatment plant and a new coffee processing plant, as well as upgrading existing coffee processing and drying facilities.
“Investments of this magnitude demonstrate the Nestlé Group’s commitment to long-term business building and economic development in Africa,” said Nestlé South Africa corporate affairs director Ravi Pillay. “Through this investment, we will increase the capacity of our coffee factory and meet the growing consumer demand for coffee in the region. This is also aligned with our ambition of being the world’s leading nutrition, health and wellness company while offering our consumers quality, nutritious and affordable products.
“We are extremely proud to be inaugurating this factory in our centenary year. For 100 years we have been manufacturing proudly South African products for South Africans by South Africans and contributing to the local economy through job creation and foreign direct investment. We believe that for a company to be successful in the long-term it has to create value for shareholders and communities where it operates.”
Rob Davies, minister of South Africa’s Department of Trade and Industry (DTI), said that the coffee plant would prove to be a significant boost for the economies of both South Africa and Kwa-Zulu Natal province: “This investment by Nestlé over the past five years, confirms that multinationals view South Africa as a preferred investment destination and a vote of confidence in South Africa. The project contributes to the industrial development of South Africa and our regional integration objective. Lastly, the upgrade and expansion in the Estcourt plant positions Nestlé as a coffee manufacturing hub for the African Continent . the dti has a long standing relationship with Nestlé and has provided support through incentives, supplier development and facilitation of their investment.”
In 2015, the company launched a chicory farming initiative in the provinces of Eastern Cape and Kwa-Zulu Natal – where Estcourt is located – in partnership with DTI and the Department of Agriculture, Forestry and Fisheries (DAFF).
Pillay continued: “Chicory is a key ingredient in our instant coffee mixtures, Ricoffy and Ricoffy Mild. Through our partnership with the DTI and DAFF, identified farmers will supply us with chicory and we will ensure a stable supply of income for them, thus creating shared value.”
© FoodBev Media Ltd 2020
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry.
Don’t miss out on having your innovations recognised on a global scale.
Deadline for entry 11 September – enter now!