Nestle already has five plants in the Philippines and has invested nearly 14 billion pesos in the country over the last five years, the company said.
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Filipinos’ continued patronage of its chocolate drinks, coupled with the country’s sustained economic growth have prompted Swiss consumer goods giant Nestle to invest P2 billion to build a new Milo beverage factory in the Philippines – only the fourth of its kind in the world.
“We do believe in the potential of the Philippine market”.
Jacques Reber, Nestle Philippines chairman and chief executive officer, told a press conference on Tuesday that the new 5,400-square meter malt factory would be an addition to two plants in the same compound in Lipa that produce Milo and breakfast cereals.
Construction of the new Lipa malt factory started in December previous year and is expected to be completed by October 2017 and operational a month after. Driven by new technology, the new plant will only create 23 new jobs. Construction started in December last year and is targeted for completion in October next year.
A large part of that is due to the success of brands such as MILO, which has a market penetration rate of over 90% in the country.
The Philippines is now Nestle’s biggest market in Southeast Asia, second biggest in Asia next to China, and eighth largest worldwide.
The proprietary proto-malt extract used for MILO is made using barley and cassava as raw materials, Reber said. While the cassava is now imported from Thailand, the new plant will eventually provide an opportunity to grow the cassava industry in the Philippines.
The new malt plant will have an initial production capacity of 35,000 tons.
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Reber said the new plant will cater to the domestic market, but could be expanded for exports of protomalt. They include motorcycle builder KTM and bicycle parts maker Shimano.
