FOOD and beverage manufacturer Nestlé Philippines, Inc. plans to expand its product line in the country as the company aims for a P170-billion annual turnover this year.
Nestlé Group Global Chief Executive Officer Mark Schneider told reporters during a media briefing in Quezon City last week that the company will introduce more healthy products to the local market, as well as source more coffee from local farmers.
“The Philippines is our largest market in this zone,” he said, referring to Oceania, Asia, and Africa. “It’s a market where we have a long-standing presence and a strong presence.”
“As a company, we’re deeply committed to the Philippine market. It’s a strong and growing market. We are also particularly interested in manufacturing and sourcing more from the Philippines. Typically, we don’t have one portfolio for the entire world. We target it specifically to the country and where we see the greatest opportunity,” Mr. Schneider added.
In the same media briefing, Nestlé Philippines Chief Executive Officer Kais Marzouki disclosed that the manufacturer is eyeing a P170-billion turnover this year, higher than the P160 billion logged by the company in 2022.
Mr. Schneider said Nestlé is committed to growing its Philippine business as well as sustaining its efforts to help the growth of the Philippines.
“For example, sourcing more coffee from the southern part of the Philippines is a key initiative of ours. We have a wonderful coffee market here. We’re working with farmers on the ground to make sure that more coffee is produced locally so that there’s less need for imports into this country,” Mr. Schneider said.
“We see exciting opportunities expanding the coffee business, also new growth initiatives in the dairy business, medical nutrition, and nutrition for ageing people. So those are areas where we believe we can make good contributions over time,” he added.
Mr. Schneider added that Nestlé is planning to introduce innovations and new products for its local offerings in the health and elderly nutrition segment.
“We constantly have dozens of innovations coming out. We pride ourselves in our innovation pipeline,” Mr. Schneider said. “Anything related to healthy ageing and nutrition for elders and also for, vitamins, minerals, and supplements, these are products that we intend to introduce to a greater extent into the Philippine market over time.”
Meanwhile, Mr. Marzouki said Nestlé Philippines does not have immediate plans to establish a new factory and is instead eyeing to expand the production of its existing plants.
Nestlé Philippines currently has five local factories located in Cabuyao, Tanauan, Lipa, Cagayan de Oro, and Pulilan.
“We have five factories here. But we are very proud that more than 90% of what we sell here is made here,” Mr. Marzouki said.
“We want to expand our plants. We don’t have a plan to build a new factory, but our factories have growth potential. There is no decline in our sales,” he added.
Mr. Marzouki added that the company is focusing on nutrition since its consumers are “generally deficient in Vitamin A, Vitamin C, and Vitamin D.”
“Already more than 60% of what we sell is fortified. So, our innovation going forward will be also more in that direction because we really have a role as a food company to really move the needle there and make a difference,” Mr. Marzouki said. — Revin Mikhael D. Ochave