Nestlé Increases Local Sourcing In South Africa With New Processing Plant
Swiss food company Nestlé said it will be locally sourcing over 40% of raw materials for a new processing plant in South Africa to offset supply chain challenges and cut costs.
Nestlé opened a processing unit for its coffee brand Nescafe on Tuesday, at its factory in Hammanskraal near the capital, Pretoria, as it moves to tap into an increasing demand for coffee consumption in South Africa.
Nestlé had said last month that it was ramping up local raw material sourcing in Nigeria and other African countries to reduce foreign exchange exposure.
Power Cuts
Food producers in South Africa have been hit by a combination of long hours of power cuts forcing them to run expensive diesel generators and a massive slump in domestic currency making imports dearer.
Both issues are making the impact of higher food price inflation worse.
The company’s communications executive Mota Mota said the plant would aim to reach 90% local sourcing in “the immediate near future.”
Local sourcing
Nestlé, which runs five factories in South Africa, already produces Cremora coffee creamer and Maggi instant noodles, with the raw materials for both are heavily sourced locally.
Its localisation efforts would also help to reduce environmental impact caused by imports, create employment and cut down on time to reach consumers, the company said.
Related news
Nespresso debuts honey-based product line
Nespresso USA has launched Nespresso Bloom, a range of honey-based…
Read more >L’Oréal To Acquire 10% Stake In Swiss Skin Care Company Galderma
French cosmetics company L’Oréal is to acquire a 10% stake…
Read more >Nestlé Germany sources green electricity from German plants
Since July, Nestlé Germany has been purchasing electricity from German…
Read more >Related news
A new office responsible for food safety and retail trade can be established under the leadership of Márton Nagy
A new top organization called the National Trade Office could…
Read more >K&H: Almost two-thirds of businesses are planning development
The majority of domestic micro, small and medium-sized enterprises, 61…
Read more >KSH: industrial production fell by 8.2 percent in June
In June 2024, the volume of industrial production was 8.2…
Read more >