Nestlé invests US$220m in new beverage factory in Indonesia to meet growing consumer demand

INDONESIA – Nestlé, the world’s largest food company, has inaugurated the construction of a new beverage factory in Batang, Indonesia in an effort to fulfill growing consumer command.

According to a statement by Nestlé, the new new Nestlé Bandaraya factory will produce Bear Brand liquid milk and ready-to-drink beverages, Milo and Nescafé and is anticipated to create about 200 new jobs.

The facility located at Batang Industrial Park will be on 20 hectares of land and is expected to be ready for commercial production in 2023.

The Swiss-based food manufacturing giant said the new factory will encourage the further development of the dairy sector in Central Java province where it is located and in Indonesia.

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Nestlé Indonesia has been partnering with dairy farmers and cooperatives in East Java since 1975, providing them with technical and financial assistance to improve the productivity and quality of fresh-milk production.

With the construction of the new factory, the company has signed a memorandum of understanding with the regional government of Batang to develop a partnership with prospective dairy farmers and farmer groups to source additional raw materials for production.

“Despite the COVID-19 pandemic, we are optimistic about the growth opportunities in Indonesia, said Ganesan Ampalavanar, the Market Head of Nestlé Indonesia.

“Our decision to invest in this new factory and to expand our capacity is a demonstration of Nestlé’s long-term commitment to Indonesia.”

Meanwhile Nestlé USA has announced that it will eliminate 34 positions at its facility in Burlington, a measure the company says is connected to the sale of its American confectionary business back in 2018.

We are winding down our post-sale production support commitments and are working with all parties involved to support the affected employees,” a Nestlé spokesperson said in a statement.

Nestlé sold its U.S. confections business in April of 2018 to Italy-based Ferrero, a company most known for its product Nutella.

Nestlé’s confectionary unit included brands such as 100 Grand, Baby Ruth, Crunch, Butterfinger and Laffy Taffy.

In California, water officials have moved to stop Blue Triton Brands (formerly Nestlé Waters North America)  from siphoning millions of gallons of water out of California’s San Bernardino forest, as drought conditions worsen across the state.

The draft cease-and-desist order, which still requires approval from the California Water Resources Control Board, is the latest development in a protracted battle between the bottled water company and local environmentalists.

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