Nestlé USA recently unveiled its new $675 million beverage factory and distribution center in Glendale, Arizona, marking a significant investment in its manufacturing network. This state-of-the-art facility, first announced three years ago, is set to create 300 jobs and will focus on producing creamers for popular brands such as Coffee mate, natural bliss, and Starbucks. Nestlé has also hinted at the potential for expanding the factory to include other beverage products in the future.
The decision to expand their operations comes at a time when consumer behavior is shifting towards incorporating coffee and creamers into various drinking occasions beyond just the morning routine. With this new facility, Nestlé now boasts a total of 20 food and beverage factories across the U.S., solidifying its position as a key player in the industry.
Nestlé’s strong presence in the coffee category, which includes well-known brands like Blue Bottle, Seattle’s Best, Nescafé, and Nespresso, positions them as a leader in meeting the growing demand for coffee products and creamers. The company estimates that over 70% of consumers use creamers to whiten their coffee, a trend that is expected to continue rising, especially among younger generations.
The COVID-19 pandemic further fueled the demand for creamers as more people shifted to preparing coffee at home. This change in behavior has led to a surge in sales for products like Nestlé’s Nespresso machines, highlighting the importance of keeping shelves stocked with these offerings. Daniel Jhung, President of Coffee and Beverage for Nestlé USA, emphasized the company’s commitment to meeting consumer needs and driving growth in the category through innovation and customization options.
In addition to meeting consumer demand, the new Arizona facility incorporates various sustainability measures to reduce its environmental impact. These initiatives include water management tools to recycle and repurpose up to 75% of treated process water, recyclable bottles made from food-grade recycled plastic, and the use of renewable electricity to lower carbon emissions. Nestlé has set a goal of achieving zero emissions across its global operations by 2050, aligning with its commitment to sustainability.
The advanced technology and digital tools at the 630,000-square-foot factory enable Nestlé to adapt production based on changing consumer preferences, trends, and seasonal demands. The facility’s strategic location in Arizona also allows for closer proximity to customers and consumers in the western U.S., reducing transport times. This move is significant as much of Nestlé’s creamers are currently produced at a plant in Indiana.
Overall, Nestlé’s investment in the new beverage factory and distribution center in Arizona reflects its dedication to meeting consumer needs, driving innovation in the coffee and creamers market, and prioritizing sustainability in its operations. This strategic move positions Nestlé as a key player in the food and beverage industry, poised for continued growth and success in the evolving market landscape.
