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Nestlé Mexico to invest US$154 million in new coffee factory

Nestlé Mexico announced a US$154 million investment in a new coffee production centre in Veracruz, Mexico during a private meeting in December with Mexican President Andrés Manuel López Obrador.

In its first phase, the factory will employ 250 people directly and generate a further 2500 indirect jobs. Nestlé says it has the potential to provide 1200 and 12,000 indirect jobs at the end of its expansion, including support for the training of young people through the dual training model.

“We are very pleased to share joint objectives with President Andrés Manuel López Obrador and his team. We both believe in supporting young people, where Nestlé has been a pioneer in the country,” Nestlé México CEO Fausto Costa says.

“We also both believe in the strengthening of the Mexican countryside and the importance of accelerating the growth of the Southeast region. This new investment in Veracruz confirms our commitment to Mexico and its people. The country’s economic stability and competitiveness have been fundamental factors to strengthen us as Nestlé’s fifth largest market worldwide.”

Nestlé says the factory will process 20,000 tons of green coffee annually, and will operate under a system of operational management meeting global quality and safety standards.

The factory will implement technologies for the processing of coffee and the reduction of water and energy consumption. These include treatment and reuse of water, use of coffee waste to produce energy, and use of renewable electricity.

With the new site, Nestlé will have 18 production facilities in Mexico, producing a range of products including coffee, dairy products, bottled water, cooking aids, and pet care.

In Veracruz, Nestlé buys more than $1900 million pesos (US$98 million) in raw materials from more than 10,000 producers annually. Through the Nescafé Plan program, it has presence in the main coffee zones of the state, in the central and great mountains region.

During the 2017-18 harvest season, it bought 340,000 bags (69 kilograms) of coffee, which represents more than 35 per cent of the grain it uses nationally and provided technical support to more than 5,000 participating producers.

Nestlé says it has identified coffee as a strong growth driver, and the coffee business has seen positive organic growth over the past years.

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