Nestlé USA has planned to invest $675 million to build a new factory in Glendale, Arizona. The purpose of this expansion is to meeting the increasing demand of Nestlé beverages. Moreover, the new plant will create at least 350 new jobs.
The new facility will comprise of 630,000 square feet and will be operational in 2024. The factory is like to make creamers, including those based on oat milk, for Coffee mate, Starbucks and other brands. In 2021, U.S. retail sales of coffee creamers totaled $3.9 billion. This was nearly 40% up from 2016. Nestle is the market leader in the creamer space.
Benefits for Nestlé
The decision to open a new plant in Arizona comes with a number of benefits for Nestlé. Firstly, it will provide company with close proximity to customers in Western United States. Moreover, the close proximity will help in improving the supply chain operations. Thirdly, it will also help in reducing the transport timelines. Currently, an Indiana Plant manufactures most of the creamers. and are shipped to various locations across United States. The company said the metro Phoenix factory will offer close proximity to millions of consumers in the western United States. Moreover, it will reduce transportation times and truck emissions.
The establishment of new production facility will open new avenues for new jobs as well. The facility is estimated to bring 350 new jobs in Glendale area in a couple of years. The jobs will include engineers and manufacturing personnel. “We appreciate the partnership from state and local officials and look forward to contributing to the local economy and Glendale community for many years to come, including through the creation of over 350 jobs,” Daniel Jhung, president of Nestlé USA’s beverage division said in his statement.
The Glendale facility will comprise on 144 acres approximately. The company plans to design it in a way to reduce water use and minimize waste sent to landfills. In addition, Nestlé will use fully recyclable product packaging made from food-safe recycled plastic.
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