Nestlé has officially begun development of its first ever infant formula plant in Russia, with the laying of a foundation stone at its existing Vologda site where the firm has already operated for 14 years.
The world’s largest food and nutrition company said the new facility will strengthen its leading position in the Russian infant formula market, and support export to neighbouring countries.
“Today we are happy to announce that we start construction of the infant formula site, which will allow us to double the capacity of our local production from 2019 onwards,” said Eddy Dauphin, Nestlé baby food factory manager.
Martial Rolland, CEO of Nestlé in Russia and Eurasia, added that the factory in Vologda is a strategic plant for Nestlé in Russia and CIS, the only factory producing Nestlé infant formula in the Russia and Eurasia region.
“This new factory will allow us to strengthen our leading position in the Russian infant formula market by developing our ability to supply both the domestic and the export markets,” he said.
Strategic investment
According to Nestlé, the €26 million (30m CHF) investment is in line with its strategy to increasingly focus capital spending on the high-growth food and beverage categories of coffee, pet care, infant nutrition and bottled water.
The company already owns and operates 8 factories in Russia, and has invested around €1.7 billion (CHF 2 bn) into the development of local production.
About 70% of raw materials and 90% of packaging are of local origin, which allows Nestlé to produce locally more than 90% of the goods sold at the regional market.
The new infant formula facility will be operational by 2019, and will use state of the art equipment to meet quality standards and apply Nestlé’s principles on reducing environmental impact – aiming for zero waste.