Swiss FMCG giant Nestle is to invest about R$400 million ($101 million) to expand production capacity in Brazil over the course of 2016, Supermercado Moderno reports.
According to the news agency, the plan is to increase capacity by introducing new production lines, allowing some items that were previously imported to be manufacturer locally.
Among the areas slated for investment are pet food and coffee, especially to meet expected growth in the Nescafe Dolce Gusto brand: sales of Dolce Gusto coffee capsules in the country nearly doubling from 2014 to 2015, according to the article.
Commenting on the move, Laurent Freixe, Nestle’s executive vice president in the Americas, said: “Brazil is in crisis this year and the recovery will be difficult, but our view is that there’s still a large consumer market and it will become dynamic once again in the medium term”. Mr Freixe added that in 2016 the firm would be making a particular effort to reduce structural and operational costs.
Source: Supermercado Moderno