Swiss food and drinks giant Nestle said today (November 29) it will invest R$6bn ($1.23bn) in Brazil by the end of 2025, as the company seeks to grow its business and expand manufacturing capacity there.
According to Reuters, the investment will include building a new Purina plant in the southern part of the country, as well as launching a new KitKat production line at its facility in Cacapava.
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The food and baby care industries in Latin America are forecast to record a compound annual growth rate (CAGR) of 4.3% and 3.2%, respectively, in the next four years.
In 2022, around 14% of Nestle’s brand sales came from Latin America – below North America (26.9%), Asia (25.8%) and West Europe (21.2%). GlobalData experts expect sales in all regions, except in consumer health in Africa, to grow between 2022-27.
As of November 2023, Nestle had a market capitalisation of $302.03bn, according to Companies Market Cap. The company has been the most active food greenfield investor between Q1 2019 and Q3 2023, data gathered by GlobalData’s FDI Projects Database shows.
Nestle’s top destination countries (by number of greenfield projects) were the US, Brazil and China. These three countries account for 48% of its total number of food investments.
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