The Vevey-based company says the three-year investment in its Gerona factory will accelerate the production of its packaged instant coffee and single-dose coffee capsules
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The investment will increase Nestlé’s instant coffee and coffee capsule production | Photo credit: Nestlé
Swiss food and beverage giant Nestlé has announced it will invest €100m ($97m) to increase production capacity at its Girona coffee factory in Spain.
The investment, spread over the next three years, will increase Nestlé’s instant coffee and coffee capsule production.
The Girona factory exports large volumes to Europe, America, Asia, Africa and Oceania. In 2020, the factory exported 80% of its production across 59 countries, including Switzerland, the UK, France, Greece and Mexico.
The investment will also upgrade technology at the facility to improve sustainability and logistics. The company is targeting a reduction in its net emissions by 50% in 2023 compared to 2018 levels, and has a longer-term goal of reaching zero emissions by 2050.
Nestlé operates ten factories across Spain, including a second coffee facility in Reus, south of Girona.
"We are very proud to attract this investment to the Girona factory in recognition of the professional qualifications and skills of the human team. In addition, it represents a step forward in the consolidation of the factory as the reference plant of the Group," said Jordi Jaen, Director of the Nestlé factory in Girona.
The company cited demand for coffee as the main contributor to organic growth across the group in 2021. In Nestlé’s half-year results in July 2022, the company reported high-single-digit growth in coffee sales attributable to a strong recovery in out-of-home channels.
The €100m investment follows Nestlé opening its new $340m Nescafé coffee factory in the port city of Veracruz, Mexico, in July 2022. The company said approximately 40,000 tons of green coffee will be processed in the factory per year, predominantly from Mexican coffee farms.
In September 2022, the Swiss food and beverage giant also revealed significant investment in its Indian operations, pledging $613m over the next three years to capitalise on growth opportunities for its products in the country.