Nestlé PH eyes double-digit growth for RTD segment
Credit to Author: TYRONE JASPER C. PIAD| Date: Fri, 05 Apr 2019 16:35:42 +0000
TANAUAN, BATANGAS: Nestlé Philippines expects its ready-to-drink (RTD) segment to post double-digit growth this year after its new plant opened here on Thursday.
On the sidelines of the P2.8-billion facility’s inauguration, Nestlé Philippines Chairman and Chief Executive Officer Kais Marzouko declined to specify figures, but said “RTD is something important for us and a big growth driver for the future.”
Last year, the RTD segment produced over 100,000 tons of beverages.
The plant occupies nearly 14,700 square meters of land and features wet-process and ultra-high-temperature equipment to ensure the products’ quality.
According to Nestlé, all processes inside the factory are automated, including the packing and palletization line.
The plant has an annual capacity of 80,000 tons, which is seen to address the growing demand for RTD products.
The factory currently only produces chocolate milk brand Nestlé Chuckie, but its cream brand Nestlé All-Purpose Cream will start production by mid-year.
The facility is Nestlé’s second in Tanauan; the first is devoted to powdered milk production.
“At Nestlé Philippines, our investments come from our faith in the country and signify our commitment to participate in nation-building as we have done for more than a hundred years,” Marzouki said.
Nestlé Philippines, the official said, has spent P13.7 billion as capital expenditures in the last five years, averaging P2.7 billion annually. The bulk of this were used to finance facility upgrades in its plants in Tanauan, Cabuyao town in Laguna province, Lipa City in Batangas province and Cagayan de Oro; and to further distribution channels.
About the same amount is expected to be spent in the next five, he added.
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