Nestlé plans to invest 2.7bn reais ($550.8m) in its chocolate and biscuit operations in Brazil by 2026, triple the amount invested in the past four years, according to the company.
This significant funding will primarily be used to expand and modernize production lines at Nestlé factories in Caçapava, Marília, and Vila Velha. These facilities play a crucial role in exporting products to more than 20 countries and currently employ over 4,000 people.
In Caçapava, KitKat chocolates are produced, while Vila Velha focuses on the Garoto brand. The Marília unit specializes in biscuit manufacturing.
Nestlé recently received approval to acquire Garoto, a Brazilian chocolate maker, after a two-decade-long agreement. Although the production site has remained separate, Nestlé has been able to invest in the Vila Velha site.
Through this investment, Nestlé aims to accelerate product development, expand its environmental, social, and governance (ESG) actions, and enhance the Nestlé Cocoa Plan sourcing program, which promotes regenerative agriculture practices in the cocoa supply chain.
Patricio Torres, Vice President of Biscuits and Chocolates for Nestlé Brazil, emphasized the consistent and sustainable growth of Nestlé’s Brazilian operations. In the past year alone, the company’s chocolate and biscuit portfolio has seen a 24% increase in demand in Brazil.
Nestlé, which employs over 30,000 people in Brazil and operates 20 industrial units and nine distribution centers, announced in February 2022 that it would invest more than 1.8bn reais in the country that year, focusing on production, distribution, and technology.
In the first half of 2023, Nestlé’s net sales reached SFr46.29bn ($53bn), with its Latin American market contributing over SFr6bn. Brazil stood out with “double-digit growth,” driven by strong demand for KitKat and local brands.
Nestlé’s commitment to innovation, sustainability, and meeting consumer trends positions it as a key player in the food and beverage industry. The company’s continued investments reflect the ongoing evolution and competitiveness of the global market.
