Nestlé has committed €30 million (approximately $32.97 million) to upgrade its cereal beverages production line at the Avanca factory in Portugal, the only facility of its kind in Europe. This significant investment is part of Nestlé’s broader strategy to enhance production capacity and operational efficiency, catering to the rising consumer demand for nutritious beverage options.
The factory upgrade includes the installation of state-of-the-art machinery, expected to increase production capacity by about 15%. Additionally, the new equipment is designed to minimize waste, reflecting Nestlé’s commitment to sustainable manufacturing practices. “These machines are significantly quieter than the previous ones, improving the working environment for our employees,” a Nestlé spokesperson remarked.
Nestlé’s cereal beverages, including popular brands such as Tofina, Pensal, Bolero, and Mokambo, have garnered increasing consumer interest due to their lack of added sugars. Recently, they were recognized by the Portuguese Nutrition Association for their nutritional benefits.
Currently, about 70% of the Avanca facility’s output is exported, with major markets in Europe, Latin America, and Asia, particularly Japan. This investment builds on a previous expansion in 2021 that doubled production capabilities, underscoring Nestlé’s ambition to strengthen its position in the growing cereal beverages market, driven by consumer preferences for healthier drink alternatives.
Nestlé, a longstanding presence in Portugal since 1923, operates two factories and a national distribution center in the country. In 2022, the company generated €677 million in sales in Portugal and employs over 2,500 people across its operations.
In its financial report for the first half of 2024, Nestlé announced a 4.5% organic sales increase in its Europe zone, with significant growth in its water and coffee segments. The company’s ongoing focus on innovation and sustainability is expected to fuel its continued success in the competitive food and beverage industry.
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