Nestlé says it will invest $100 million into its Colombian production efforts and growth capacity over the next three years.
The investment – announced during the inauguration of a new production line for the Milo brand at Nestlé’s Bugalagrande, Colombia, facility – represents part of an agreement reached between the country’s government and Nestlé.
Nestlé will seek to expand its production capacity, advance its cultural transformation and innovation, and continue working towards the sustainability of its business.
The company hopes to contribute to the construction of a “more prosperous society, aligning itself with the priorities of the national government in terms of generating opportunities for young people, building more peaceful communities and protecting the environment”.
With the funds, Nestlé says it has taken the first steps in its investment plan for 2026. Its new production line will receive an investment of $10 million, allowing the company to increase its capacity in tons produced by 40% and increase exports of its Milo product by 15%.
President Gustavo Petro stated: ”What we have inaugurated is an investment of $13 million and an announcement of $100 million more. This means, these days, a demonstration of confidence in Colombia, in its future, undoubtedly, because these investments are not short-term, they are here to stay.”
On social media platform Twitter, Petro also wrote: “Industrialising Colombia is essential if we want to get out of poverty”.
The investment will be distributed among the different companies in which Nestlé SA has a majority stake, enabling the company to locate resources in cities such as Bugalagrande, Valledupar, Dosquebradas and Mosquera, in addition to expanding the Value Creation programmes.
Laurent Freixe, CEO of Nestlé Latin America, said: “The announcement of our investment strategy for the next three years has only one meaning: we believe in Colombia and its development potential”.
He continued: “This decision will allow us not only to continue strengthening our product portfolio and the industry, but it is intended as a strategy that transcends our business and that manages to align with some of the government’s priority points in terms of youth employability, promotion of human rights and construction of peaceful communities and is committed to developing concrete initiatives to reduce polluting emissions and take care of the planet.”
© FoodBev Media Ltd 2022
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