Nestlé And Lactalis Announce Major Investments In Brazil

Nestlé Brasil plans to invest BRL 1 billion (€157 million) by 2028 to upgrade and expand its instant coffee factory in Araras, state of São Paulo.

This investment, the largest among Nestlé Brasil’s 18 units, is part of a broader BRL 7 billion (€1.1 billion) company-wide package for 2025-2028.

The funds will be used to install a new, state-of-the-art coffee extraction line, aiming to increase the factory’s instant coffee production capacity by 10%.

A key upgrade includes a new extraction line featuring advanced technologies like AI-powered Advanced Process Control (APC) for real-time adjustments and error prediction, and generative AI for predictive analysis.

Currently, the Araras facility produces 33,000 tonnes of Nescafé annually, exporting to 65 countries.

These initiatives align with Nestlé’s ‘connected factories’ vision, building on previous Industry 4.0 successes that have boosted productivity and reduced downtime.

This new investment complements an earlier BRL 500 million (€79 million) commitment to Nestlé’s broader coffee business in Brazil.

A portion of the investment will also focus on sustainable practices, specifically harnessing energy from the coffee drying process.

Lactalis

Elsewhere, Lactalis Brasil announced a R$400 million (€63 million) investment in the state of Rio Grande do Sul, focusing on expanding five industrial units and two distribution centres by 2028.

This investment will boost the production of prato and mozzarella cheeses, whey protein, butter, cream cheese, and dairy blends in Ijuí, Teutônia, Santa Rosa, and Três de Maio.

The company aims to increase its production in the state from 304,000 tonnes in 2024 to 453,000 tonnes by 2028.

To achieve this target, raw milk production in the region will need to rise from 900 million litres annually to 1.3 billion litres.

Lactalis Brasil CEO, Roosevelt Júnior, noted that this alone requires a 10% increase in Rio Grande do Sul’s overall milk production.

Specifically, cheese production is projected to reach 100,000 tonnes per year by 2028 – a 70% increase from the current 58,000 tonnes.

The new investment brings Lactalis Brasil’s total commitment in Rio Grande do Sul to BRL 1 billion (€157 million), adding to the BRL 600 million (€94 million) already invested.

The French company currently operates 23 factories and 49 logistics centres across eight Brazilian states, employing 14,000 people and processing 2.8 billion litres of milk annually.