Nestlé has announced the construction of a new CHF 54 million food production plant in Cuba, alongside the Cuban food enterprise Corporación Alimentaria S.A (Coralsa).
The new facility will produce Nescafé, the local Cuban roast and ground coffee Serrano, Nestlé Fitness cereal-based snacks, the Nesquik powdered beverage, as well as Maggi cooking aids, according to Nestlé.
Total yearly production is expected to be over 18,500 tonnes for local consumption and exports. The factory will be located in a 602,779 sq ft area.
Construction is expected to be completed by the end of 2019, and operations will start in the first half 2020 with 260 employees, according to the company.
Designated Industrial Area
The factory will be built in the Mariel Special Development Zone (ZEDM), which lies 45 kilometres west of Havana on the northwest of the island. It's is a state-controlled industrial development area, which is regulated by special regimes and policies designed to attract foreign direct investment and expertise to Cuba.
This policy is intended to lead to an industrial concentration which will replace imports, boost exports and generate new employment, according to the official ZEDM website.
According to Nestlé, the inauguration ceremony was attended by Cuban authorities and business figures, including María Carmen de la Concepción González, the Cuban minister of food industry, Ana Teresa Igarza Martínez, general director of ZEDM and Nelson Arias Moreno, president of Coralsa.
“This new factory will help meet growing consumer demand and further strengthen our presence in Cuba,” said Laurent Freixe, CEO for the Americas at Nestlé, during a three-day visit to the island.
“Local production capacity combined with Nestlé’s know-how will benefit the local food industry and create new chances for growth.”
“This production plant represents a great opportunity to develop new categories with high demand in the Cuban market,” said Harold Hoffmann, Nestlé country manager for Cuba. “We seek to offer products with nutritional value, in coherence with our nutrition, health and wellness strategy, while expanding the business in the region”.
Cuban Tour
The Nestlé delegation made several other visits during its trip to Cuba. They visited the Los Portales plant, at Pinar del Rio, where the company produces carbonated soft drinks and bottled water.
They also visited the Palacio de los Pioneros Ernesto Guevara in Havana, where Nestlé will sponsor a permanent education pavilion on healthy food habits, targeted at school-age children, the company said.
Nestlé has been operational in Cuba since 1908, with significant growth over the last 20 years, with production plants for mineral water, carbonated soft drinks and ice-cream, according to the company.
“Cuba has great opportunities for industrial development,” said Alexandre Carreteiro, Nestlé’s market head for the Latin Caribbean region.
“With this investment we aim to be a part of its growth as we are sure that it will continue to be an important engine of profitability in the Latin Caribbean region while establishing a strong footprint in the country for the next decades.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
