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Nestlé Continues to Unlock Growth Opportunities in Africa

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Nestlé Continues to Unlock Growth Opportunities in Africa

Nestlé Continues to Unlock Growth Opportunities in Africa
September 27
09:47 2012

Nestlé is continuing to unlock growth opportunities in Africa with the inauguration of its first factory in the Democratic Republic of Congo (DRC). The Swiss group has invested SFr15 million (Eur12.4 million) in the factory in Kinshasa as part of its long-term efforts to better adapt its products to local tastes and nutritional needs.

The site, which opened in 2011 and is now fully operational, is a ‘finishing factory’ for micronutrient-fortified Maggi culinary products such as bouillon cubes and tablets. Finishing factories have a flexible design that makes them easily adaptable for different manufacturing purposes, including processing ingredients or packing products. They enable Nestlé to get closer to its consumers while maximising its use of locally produced raw materials.

The site in Kinshasa has created more than 60 direct jobs and is providing business opportunities for suppliers in the region. It is the latest factory of its kind Nestlé has inaugurated in Equatorial Africa recently, following the opening of another in Angola last month. Both were built as part of a three-year, SFr150 million investment programme the company launched in the region in 2010.

The individually wrapped Maggi bouillons and tablets produced in Kinshasa belong to Nestlé’s ‘popularly positioned products’ (PPP) range. These locally adapted food and beverages provide lower income consumers with access to tasty, affordable nutrition.

Often sold in single servings to allow them to be bought on daily basis, most are carefully formulated to help address micronutrient deficiencies prevalent in specific regions. They are part of Nestlé’s multi-tier strategy to make its brands available to consumers across socio-economic segments in all 54 countries in Africa.

The multi-tier approach also includes products for the continent’s growing middle class such as premium portioned coffee Nespresso, popular among urban professionals in South Afric aand Mövenpick premium ice cream, which has strong sales in Egypt.

Nestlé has invested about $1.2 billion in Africa over the last five years to build up its local manufacturing capabilities, expand its distribution networks and develop more products catered to local tastes and needs. Demand for Nestlé products in Africa is such that the company expects to more than double its business on the continent by 2020.

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