Nestle steps up production in Spain with €10m investment

By Oliver Nieburg

- Last updated on GMT

Related tags Chocolate Investment Nestlé

Nestle steps up production in Spain with €10m investment
Spanish chocolate confectionery market leader Nestle has invested €10m on a new production line its factory in La Penilla de Cayon to drive growth in the Mediterranean.

In its 2011 nine month sales, Nestle reported organic growth of 3.7% in Spain, Italy, Portugal and Greece.

In 2010, sales of Nestle products in Spain amounted to €2.209m up 6.3% on the previous year.

Its new production line, which will produce Nestle’s gift chocolate brand Caja Roja, will increase the plant’s annual production capacity by 7,000 tonnes.

Fortify market leadership

Juan Carlos Peralejo, business executive manager of chocolates for Nestlé Spain, told “Nestle means primarily chocolate for the Spanish consumer, and is the clear market leader.”

“We can say that 1/3 of every Kg consumed in Spain, come from Nestle products,” ​he said.

He said the production line would enable Nestle to develop new products, but would not give precise details.

“The new moulding line represents a technology breakthrough, the first of its kind in the Spanish market that will allow us to produce very innovative sweets combining different tastes and textures,”​ he said.

Boost exports

Around 40% of the plant’s annual production is exported to 45 countries worldwide. Peralejo said the recent investment would help Nestle boost its exports.

“We already have a very significant export business to 11 countries, with the special highlight of most of the tablet range for Nestle France. The new moulding line will help us to increase our capacity in the Gifting offer and also to rationalise our production,”​ he said

Continued investment

The investment is one of eight Nestle has made in Europe in the past year, such as the expansion of its Product Technology Centre in York, UK in September. Other investments mainly boosted the company’s capacity to manufacture pet food.

The La Penilla factory began chocolate production in 1929. The new production line takes total investment in the facility to €75m over the last five years.

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