Nestlé Invests US$15.8M in Spain’s Girona factory to boost recyclable coffee packaging
SPAIN – Swiss food and beverage giant Nestlé has announced a €15 million (US$15.8M) investment in its Girona coffee factory in Spain to enhance the production of recyclable packaging for its coffee products.
The company has already commenced construction on two new energy-efficient packaging lines at the facility, which produces Nescafé instant coffee and Nescafé Dolce Gusto capsules.
This investment will allow the Girona plant to manufacture Nescafé refill bags in Spain for the first time. Previously, these retail coffee bags were produced in Switzerland and transported to Spain since 2022.
The refill bags provide customers with a more sustainable alternative to traditional Nescafé glass and plastic containers.
Para Arnau Pi, Director of Nestlé’s Girona factory, emphasized the importance of the initiative in Nestlé’s sustainability strategy.
“The implementation of these new packaging lines will allow us to use recyclable materials, marking a crucial step toward reducing virgin plastics and promoting a circular economy,” he said.
Additionally, Nestlé plans to introduce a new high-throughput production line at the Girona facility for Nescafé sachets made from recyclable monomaterial.
The new line will have the capacity to produce 1,200 sachets per minute and is expected to reduce virgin plastic usage by 60 tonnes annually.
Nestlé’s Spanish business experienced a 4% like-for-like sales growth in 2024, reaching €2.6 billion (US$3.1B), with its coffee segment seeing an increase in both volume and cups consumed.
The company invested over €76 million in Spain in 2024 and currently operates 10 factories across the country, including a second coffee production site in Reus, south of Girona.
In September 2022, Nestlé announced a separate €100 million ($105 million) investment in the Girona factory.
In addition to its investments in Spain, Nestlé has reached an agreement with the Hsu family to acquire the remaining 40% stake in Chinese confectionery manufacturer Hsu Fu Chi.
Nestlé’s expansion
Nestlé first entered a partnership with Hsu Fu Chi in 2011 by acquiring a 60% stake in the company. Since then, Nestlé has provided technical and marketing support, focusing on recipes, research and development, and quality control for the brand.
The full acquisition will grant Hsu Fu Chi broader access to Nestlé’s global resources and expand Nestlé’s footprint in China’s snack and confectionery market through an established distribution network.
Nestlé currently operates 23 factories, five product innovation centers, and three R&D centers in China, employing more than 21,000 people across the country.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
