Nestlé to build new US beverage factory

By Anita Awbi

- Last updated on GMT

Related tags Organic growth United states

Swiss food giant Nestlé has announced plans to open a $359m
(€281.9m) factory and distribution centre in Indianapolis, to cater
for rising demand for its ready-to-drink beverages.

The 190 acre site, located 40 miles outside Indianapolis, will produce Nesquik Ready-to-Drink and Coffee-Mate Liquid products for sale throughout North America.

Construction will begin later this year, with the completion date set for spring 2008.

"Nestlé is committed to providing consumers with the best-tasting, nutritionally superior beverages, wherever and whenever they want them,"​ said Rob Case, president of Nestlé USA's beverage division.

"This new facility will enable us to greatly expand our production and distribution capabilities, thereby allowing us to better serve our consumers."

In April the firm said its American business delivered a strong performance with organic growth of 6.6 per cent. Nestlé USA and Dreyer's were particularly dynamic, while Latin America enjoyed eight per cent organic growth, mainly driven by the smaller regions.

Among the products groups, beverages achieved 9.7 per cent organic growth, while soluble coffee products achieved 7.7 per cent organic growth.

In February Nestlé's Americas division established itself as the food firm's most important business region for the first time following difficult conditions and subdued sales growth in Europe.

The firm reported that North America had risen to the forefront of Nestlé's business in 2005 thanks to strong growth in ice cream, its joint venture with New Zealand dairy co-operative Fonterra and a 16.5 per cent sales rise for bottled water.

Sales at Nestlé's whole Americas division grew by almost eight per cent last year after "stellar performances"​ in its important emerging markets of Mexico and Brazil.

This region helped the group to a 7.5 per cent full-year sales rise to €58.3bn, while net profits grew 8.8 per cent to around €5bn.

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