President Aquino leads groundbreaking for Tanauan Factory

His Excellency, President Benigno S. Aquino III, Nestlé Philippines Chairman and CEO John Miller, Swiss Ambassador to the Philippines Ivo Sieber, Batangas Vice-Governor Mark Leviste, Tanauan City Mayor Sonia Torres Aquino, and Sto. Tomas Mayor Renato Federico led the groundbreaking ceremony on November 23, 2010 for Nestle Philippines’ new factory in Tanauan, Batangas in which investments totaling PhP 4.3 billion will be made over the coming two years.

The factory, which is expected to be completed in March 2012, is situated on a 27-hectare site and will produce COFFEE-MATE Non-Dairy Creamer and BEAR BRAND Powdered Milk Drink. Mr. Miller said that with continued growth in demand for the two brands, both of which are market category leaders, the factory will increase much-needed manufacturing capability. The domestic market demand in 2010 for BEAR BRAND and COFFEE-MATE is projected to grow by 19% and 8%, respectively, with BEAR BRAND exports under the brand name EVERYDAY seen to grow by 38%.

“In 2011, Nestlé will celebrate one hundred years in the Philippines. One hundred years of service to the Filipino consumer is a great source of pride within our company and it is fitting that most of the Tanauan factory’s construction will take place during Nestlé Philippines’ centennial, signifying our continuing commitment to the country. Our investments, in line with our corporate thrust of Creating Shared Value (CSV) for all stakeholders in society, give us the confidence to look forward to the next 100 years of nurturing Filipino families by offering Nutritious, Health and Wellness products,” Mr. Miller said.

The Tanauan factory, which will contribute to the growth of the domestic economy, will initially provide direct employment for a new work force of 170, while creating many other jobs in businesses supplying the facility with raw materials and services.

Apart from the new factory’s construction, Nestlé is also continuing to invest in its four existing facilities in Cagayan de Oro, Cabuyao, Lipa and Pulilan, especially in technology and equipment to enable the company to meet increasing demand for its products. Nestlé’s local investments in the past five years have totaled close to PhP 10 billion, with about 80% allocated for existing facilities to generate higher efficiencies and to protect the environment, while the balance 20% was deployed into sales infrastructure, distribution, and IT systems.

In 2009, Nestlé Philippines produced almost half a million metric tons of coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream, chilled dairy, and breakfast cereals.

The Nestlé business in the Philippines has grown in the last five years by an average of PhP 4.6 billion annually. With sales of almost PhP 86 billion in 2009, the company paid some PhP10.6 billion in taxes, a 20% increase over 2008. Nestlé is the largest corporate taxpayer in the Philippines for 2009 and is among the top eight largest corporations in the country. END