Nestle investing P6 billion to boost Philippines operations

MANILA, Philippines — Food and beverage giant Nestle Philippines Inc. is spending P6 billion until 2027 to enhance its operations, as well as support nutrition and sustainability initiatives in the country.

In a press briefing, Nestle Philippines CEO Kais Marzouki said the company would be spending P2 billion on average annually this year until 2027, sustaining the same level of investment made in previous years.

“This is to increase our capacities, to improve our technologies, to make our factories more efficient, to respond to increasing demands and to better serve our Filipino consumers,” he said.

Aside from investing in new technologies appropriate for the market to increase manufacturing efficiencies, the company also intends to spend on product innovation.

Nestle global CEO Laurent Freixe said cold coffee and pet food are some of the categories where the company sees potential for new products in the Philippines.

At present, Nestle’s top selling brands in the Philippines are Nescafé, Bear Brand, Milo and Maggi.

The company is also investing in environmental sustainability, having transitioned from fossil fuels to renewable electricity and supporting programs building a circular economy for plastic.

Marzouki said the company has been voluntarily collecting plastic used for its product packaging even before the law mandating the extended producer responsibility for plastic waste was in place.

As the country’s biggest coffee manufacturer, Nestle is also investing in helping smallholder coffee farmers have higher yields and income.

The investments are being made as Nestle continues to believe in the growth potential of the Philippines, which is the company’s sixth biggest market globally in terms of turnover.

Nestle Philippines has been posting average annual growth of five percent in terms of its top line.

In 2023, Nestle Philippines’ top line reached P169 billion.

“It’s one of the most promising countries in terms of economic growth. So for that matter, and with the population growth, it’s one of the most promising markets we’ve got in the world,” Freixe said.