Nestlé is strengthening one of its fastest growing businesses in Europe with a EUR 220 million (over CHF 265 million) investment.
The company is set to build a new Nescafé Dolce Gusto factory in Germany, the largest market for the brand worldwide.
Nescafé Dolce Gusto is Nestlé’s machine and capsule ‘coffee shop experience-at-home’ system for both hot and cold drinks. It offers nearly 30 coffee, Nesquik and Nestea varieties.
The factory, located in Schwerin, will create 450 jobs. With 12 new production lines, it will become operational by the end of 2013.
Located about 100km from Hamburg, the biggest European port for coffee imports, the factory aims to produce about two billion coffee capsules a year for export to the rest of Germany, Eastern Europe and Scandinavia.
‘Fastest growing businesses’
Nestlé made the announcement at an official ceremony at the Schwerin site.
Erwin Sellering, German Minister for the state of Mecklenburg-Vorpommern, attended the event, along with Laurent Freixe, Nestlé’s Zone Director for Europe, and Gerhard Berssenbrügge, Chief Executive Officer of Nestlé Germany.
“This is one of our biggest investments in Europe and highlights our continuous investment in our capacity for innovation,” said Mr Freixe.
“Nescafé Dolce Gusto is the leader in the portioned coffee market in 20 countries. With a growth rate of over 50%, it is one of the fastest growing businesses for Nestlé in Europe,” he added.
Growth in Europe
The Schwerin site is the company’s third Nescafé Dolce Gusto factory.
Last year, Nestlé invested CHF 64 million in the Nescafé Dolce Gusto site at its Nescafé factory in Girona, near Barcelona, Spain.
The company’s first NDG factory, which opened in 2006 in Tutbury in the United Kingdom, is already running at full capacity. Last year Nestlé invested GBP 110 million in the site to triple production.
Investing in Germany
The Schwerin factory is Nestlé’s latest investment in Germany – the company’s fourth largest market globally.
Last year the company opened a new EUR 117 million factory in Biessenhofen dedicated to producing hypoallergenic infant formula.
Nestlé invested EUR 35 million to extend its Erlenbacher frozen baked cakes and desserts factory in Erlenbacher.
The company also invested EUR 45 million to expand its Wagner pizza factory in the city of Otzenhausen.
“Our establishment of this new factory reflects more than just an important investment to expand our business. It illustrates deep trust in the country where we have had successful operations for over 110 years,” Mr Freixe added.
In the company’s continued effort to construct more environmentally friendly buildings worldwide, the Scherwin factory will seek leadership in energy and environmental design (LEED) certification from the United States Green Building Council.
Nescafé Dolce Gusto worldwide
Launched in 2006 in Switzerland, Germany and the United Kingdom, Nescafé Dolce Gusto is now available in 56 countries worldwide, with 41 of these countries in Europe.
By 2013 the brand aims to generate sales of CHF 1 billion.
Nescafé Dolce Gusto
Nestlé Germany website