Nestlé investment reaches US$30 million
uly 14, 2016By Staff Reporter
MUTARE — Leading milk and cereals producer, Nestlé Zimbabwe, has invested a total of US$30 million over the past five years in the expansion of its cereal and dairy plants.
Nestlé Zimbabwe, a unit of Nestlé, the global food and beverage giant headquartered in Switzerland, is one of the few conglomerates still operating in Zimbabwe after several companies in the country collapsed due to an unprecedented economic crisis.
The injection of the US$30 million has allowed the manufacturing firm to upgrade its old lines and install new plants for its cereal and dairy products, significantly increasing its capacity.
Nestlé corporate affairs manager, Farai Munetsi, said the food company could now meet national demand for most of its products.
“We have invested US$30 million over the last four to five years. That investment was for the expansion for the cereals plant, for Cerevita and Cerelac. We have increased capacity three times over the past years on the cereal plant,” he said, adding that all grains used are locally grown.
“We also have another line for the dairy and Cremora. We increased its capacity one and half times. We used to have capacity for only 70 percent for Cremora in Zimbabwe but right now we can now meet national demand,” he added.
Munetsi attributed the growth of their operations to the support rendered by government through the Ministry of Industry and Commerce.
He indicated that Statutory Instrument 64, which banned the import of several commodities, would go a long way in strengthening their expansion into regional markets.
Nestle has over the years been exporting to Zambia and Malawi and is currently penetrating the Botswana and South African markets.
Nestlé products include cereals, coffee, infant foods and chocolates, among others, with its popular brands being Cerevita, Cerelac and Every Day.
Munetsi indicated that several other products would be launched this year.
“We are also introducing new products. We have launched the Cremora 40 grams size, which is enough for a teapot or equivalent to five cups of tea. That sachet costs US$0,25. It now means that Cremora is now affordable and it can go to any home because of the investment which we did,” he said.
Munetsi said they had also resumed media advertisement after 15 years without allocating an advertisement budget. The move is meant to promote their brands.
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