Nestlé invests to export chocolate and pet food

Despite the recessive scenario and increasing inflation, Nestle intends to carry out a new injection of investment in Brazil in 2017 that, added to contributions this year, will transform the country into an export hub for Latin America of two brands considered important for the Swiss company: Kit Kat chocolate and moist feed Purina, the "premium" back to dogs and cats.
The array has approved 480 million R$ to be invested for the operational and technological improvement of part of its 31 factories in the country and building the second production line of chocolates at the factory of Caçapava in São Paulo-the 14th in the world and first in Latin America.
"It''s an amount in line with what already we used investing in Brazil. And we will continue to invest that amount in the coming years, "said Vice President of operations of Nestlé, the Egyptian Magdi Inga Hlin. In his first visit to the country since assuming the post in October 2015, Inga Hlin stated that these are strategic investments as a way of expansion of the company in the Mainland. Without going into details, added that the industrial unit of trademark coffee Dolce Gusto, the last opened in the country, is expected to start exporting soon.
Inaugurated in 2012, the Kit Kat plant produces between eight and nine tonnes per annum of the range "4 Fingers", the leading brand in Brazil in the category "candy bar". With the supply, Nestlé will get double the volume produced and triple the ability to export to neighbours-not disclosed for strategic reasons. Today, these chocolates have supply part of Argentina, Mexico and Ecuador. According to the company, the Brazil can meet all of Latin America from the end of next year.
In all, the Kit Kat in Caçapava consumed 200 million R$-R$ 100 million in each production line. "But I have talked [with Brazil executives] and perhaps need a third row, as we will be using 99% of our capacity," said Inga Hlin.
In addition, Nestlé launched last month its plant in production of wet dog food for dogs and cats. In common with the Kit Kat, is the only Latin America and will also have the function to supply neighboring markets. Located in Ribeirão Preto, São Paulo, received investments of 240 million R$ in 2016.
The soma ration a dry line diversified with seven brands for dogs and five cats ever produced in Brazil, a country that has the second largest population of pets in the world. The wet line, however, has more added value: in addition to the freshness, it helps in rehydration of the animal.
The ads for the Brazil occur at a time when the Swiss company faces slowdown in business. Between January and September this year, Nestlé ''s global sales reached 65.5 billion Swiss francs (US $66.1 billion), an increase of only 3.3%-weaker result in more than a decade. In October, on the occasion of the dissemination of the results of the third quarter, the company reduced its expectation of organic growth (excluding acquisitions) in 2016 4.2% to 3.5% of.
In Brazil, the company raised the price in June to compensate for the pressure with the devaluation of the real, impacting the volume marketed.