Nestle, the Swiss food and beverage corporation has announced plans to close its confectionery manufacturing facility in Diosgyor Hungary, by the end of the year due to a decline in demand for seasonal chocolate products.
The site primarily manufactures chocolate hollow figures for major brands such as Smarties, KitKat, and Milky Bar. According to the company, falling demand in recent years has led to a significant reduction in output at the plant.
The Diosgyor facility accounts for less than 3% of Nestle’s total revenue in Hungary and under 1% of its local production volume. Originally opened in 1962, the factory became part of Nestle in 1991 and exports products to more than 20 countries.
Nestle stated that it has initiated discussions regarding a potential sale of the site, expressing a desire to transfer the facility to “an investor who wishes to continue confectionery production”.
A Nestle spokesperson noted that the aim is to ensure “as many colleagues as possible” can transition to the new owner. Production of its hollow chocolate products will be transferred to a co-manufacturer in the UK.
Source: Food & Beverages Business
