Nestlé breakfast cereal exports hit $40 million in 2002

Exports of breakfast cereals produced by Nestle Phils. Inc. (NPI) totaled some 2.6 million cases valued at approximately $40 million in 2002, according to NPI chairman and CEO J.B. Santos.

The Nestle factory in Lipa City, Batangas serves as the company’s regional supply center for breakfast cereals, with products exported to ASEAN and other overseas markets.

Santos said the acceptance of its breakfast cereal products by markets in the region and elsewhere underscores the high production quality and cost competitiveness of the Nestle Lipa factory, reaffirming its status as a world-class export manufacturing facility.

He said 2002 was an outstanding year for the Nestle Lipa factory, marked by the extraordinary expansion of territory covered by its exports, with more than 80 percent of its breakfast cereals output now exported. He cited the favorable feedback from consumers in Asian markets.

"The breakfast cereals category in Asia is growing strongly, as more and more mothers appreciate the nutritional benefits that cereals can offer to their kids by providing about 25 percent of their daily needs for 10 important vitamins and minerals. Mothers also realize that because kids love the taste of breakfast cereals, they are also encouraged to take milk in the morning, promoting a healthy start to their day," Santos explained.

The Nestle chairman also disclosed that in addition to its traditional export markets in ASEAN, the Lipa factory exported breakfast cereals for the first time to a number of new markets such as China, Kenya, Uganda, Seychells, Tanzania, and Bangladesh. Last year, Nestle also opened an office in Taiwan, to which the Lipa factor has been exporting breakfast cereals, with sales showing a strong increase beyond initial expectations.

As of end 2002, Nestle Phils. was exporting breakfast cereals to over 20 countries from Africa to the Pacific, with the biggest markets being Malaysia, Thailand and Indonesia, and strong growth observed in countries like Singapore, Hong Kong and Thailand.

"Being a supply center for breakfast cereals in the ASEAN market is a recognition of our world-class manufacturing capability, allowing us to showcase the competence of our Lipa employees. It also shows that the Philippines can be competitive with other markets in the region in terms of cost and reliability," Santos said.

The Nestle range of breakfast cereals has nine brands, covering the nutritional needs of children (Koko Krunch, Nestle Honey Stars, Milo Cereals, Trix and Snow Flakes), as well as the rest of the family (Nestle Corn Flakes, Honey Gold, Almond Clusters and Banana Nut Clusters). The top three regional brands are Koko Krunch, Nestle Honey Stars, and Nestle Corn Flakes.

Santos also said Nestle is gearing up for continued strong growth in breakfast cereals exports in 2003, aiming for the consolidation of its coverage of overseas markets after the impressive territorial expansion generated in 2002.