Thread: Nestle to invest $390 million in Mexico coffee plant

Nestle to invest $390 million in Mexico coffee plant

Thu, Oct 22 2009

MEXICO CITY (Reuters) - Nestle, the world's biggest food group, said on Saturday it will invest 5 billion pesos ($390 million) in Mexico over the next three years to increase coffee processing capacity, part of a $1 billion expansion plan.

"The majority of these 5 billion pesos will be invested in the Nescafe instant coffee processing plant," Nestle said in a statement, adding that the investment would increase capacity by 40 percent at the factory in Toluca near Mexico City.

Mexico, a major world coffee producer, has struggled to improve the quality of its beans in recent years but is positioning itself as a processor of coffee to serve U.S. and European markets.

Nestle said it planned to invest $1 billion in Mexico between 2008 and 2012.

http://www.reuters.com/article/idUSTRE60T1RR20100130

Last year I bought some store brand instant coffee because it was on sale for a really good price. The first sip made me realize that I wouldn't drink anymore of it, at any price. I looked the jar over and noticed that it said Product of Mexico. I'll never buy coffee with out look to see where it's from again, and if it's from Mexico I won't drink it even if they are giving it away.

Quote:
"The majority of these 5 billion pesos will be invested in the Nescafe instant coffee processing plant," Nestle said..."

And for those who like real coffee, Folgers, a coffee company founded and still operating in the United States, continued to keep one of its canning plants located in New Orleans operating at full capacity right after Hurricane Katrina. Folgers declined to use this natural disaster, as did some other companies, as an excuse to close and relocate their N.O. plant (and that always means abroad, where their production costs are less) despite the obvious age of the facilities. (viewed on tv coverage - PBS NewsHour)

JoeDoe2 wrote:
"Last year I bought some store brand instant coffee because it was on sale for a really good price. The first sip made me realize that I wouldn't drink anymore of it, at any price. I looked the jar over and noticed that it said Product of Mexico."

I learned after a summer in Mexico and 2 years living in Chile that most people in these two countries do not drink what used to be called "perked coffee" as we do in the U.S.. Coffee (and I now remember that it was Nestle's brand in both countries) always was made from instant mix, and I don't remember ever seeing canned coffee for sale in a Chilean grocery store, although this was many years ago. In Chile, at least, hot tea, (which was less expensive) was drunk almost universally by people in financial positions other than that of the middle class (which is far smaller in Latin America) and above.

So, Nestle may just be expanding their capacity to produce a "drink mix" for which they already held a commanding presence in the region with the hope that they may be able to covert a larger share of the Latin market to purchase their product.

Nestle has not been one of my favorite companies in the US. They made a deal with a small county in Florida to build a water bottling factory, and suck water out of a pristine stream. Then they made a deal with the state in 2008 for even more:

Florida sells unlimited water-pumping rights in drought-stricken State Park to Nestle for $230
The State of Florida has given a Nestle bottling plant the right to pump as much water as it can get out Madison Blue Springs State Park, which is presently in drought conditions. The right lasts until 2018, and cost Nestle $230 in permit fees. Florida is presently in bitter dispute with its neighboring states over a region-wide water-shortage.

The company got a permit to take water belonging to Floridians — hundreds of millions of gallons a year from a spring in a state park — at no cost to Nestle.
No taxes. No fees. Just a $230 permit to pump water until 2018...

The state did much more than fight to get Nestle the right to pump as much water as possible from the spring.

As an added incentive for Nestle, the state approved a tax refund of up to $1.68-million for the Madison bottling operation. To date, Nestle has received two refunds totaling $196,000 and requested a third tax refund.

Link (Thanks, Steven!)
See also: For Love of Water: infuriating and incredible documentary about world's water-crisis

(Image: The world of water, a Creative Commons Attribution licensed photo from Snap®'s Flickr stream)

http://www.boingboing.net/2008/04/10/fl ... nlimi.html

A
ABUELITA®
B
BABY RUTH®

BIT-O-HONEY®

BUITONI®

BUTTERFINGER®
C
CARLOS V®

CARNATION® Malted Milk

CARNATION® Milks

CHUNKY®

CLASICOâ„¢ (soluble coffees from Mexico)

COFFEE-MATE®

CRUNCH®
D
Dolce Gustoâ„¢

DREYER’S®

DRUMSTICK®
E
EDY’S®
F
FROSTY PAWS®
G
GOBSTOPPERS®

GOOBERS®
H
HÄAGEN-DAZS® Ice Cream

HOT POCKETS® brand sandwiches
J
JUICY JUICE® 100% fruit juices
L
LA LECHERA® Sweetened Condensed Milk

LAFFY TAFFY®

LEAN CUISINE®

LEAN POCKETS® brand sandwiches

LIBBY'S® Pumpkin

LIK-M-AID® Fun Dip
M
MAGGI® Seasonings

MAGGI® TASTE OF ASIA™

MILO® powdered beverage & ready-to-drink
N
NERDS®

NESCAFÉ®

NESCAFÉ® Café con Leche

NESQUIK®

NESTEA®

NESTLÉ® Delicias

NESTLÉ® Hot Cocoa Mix

NESTLÉ® MIlk Chocolate

NIDO®

NIPS®
O
OH HENRY!®

OOMPAS®
P
PIXY STIX®

PUSH-UP®
R
RAISINETS®

RUNTS®
S
SNO-CAPS®

SPREE®

STOUFFER'S®

SWEETARTS®
T
TASTER'S CHOICE®

THE SKINNY COW®

TOLL HOUSE® Morsels & baking ingredients
W
WONKA®
#
100 GRAND®

http://www.nestleusa.com/pubourbrands/brands.aspx

First thing that came to my mind was "The Mexican Bailout."

http://www.encyclopedia.com/doc/1G2-3406400572.html

Nestlé

From Wikipedia, the free encyclopedia

Nestlé S.A.

Founded Vevey, Switzerland (1866)

Headquarters Vevey, Switzerland
Area served Worldwide

Industry Food processing

Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods, more...

Revenue CHF 109.9 billion (2008)[1]
Operating income â–² CHF 15.68 billion (2008)[1]
Profit â–² CHF 18.04 billion (2008)[1]
Total assets CHF 106.2 billion (2008)[1]
Total equity CHF 54.92 billion (2008)[1]
Employees 283,000 (2008)[1]

Website Nestlé.com

Nestlé S.A. (French pronunciation: [nɛs'le]) is a multinational packaged foods company founded and headquartered in Vevey, Switzerland, and listed on the SWX Swiss Exchange with a market capitalization of over 87 billion Swiss francs. It originated in a 1905 merger of the Anglo-Swiss Milk Company for milk products established in 1866 by the Page Brothers in Cham, Switzerland, and the Farine Lactée Henri Nestlé Company set up in 1866 by Henri Nestlé to provide an infant food product. The two world wars both affected growth: during the first, dried milk was widely used but the second war caused profits to drop by around 70%. However, sales of the instant coffee Nescafé were boosted by the US military. After the wars, growth was stimulated by acquisitions that expanded the company's product range and brought a number of globally recognized brands into its fold, including Maggi and Thomy. Nestlé is the world's largest foods company, followed by Kraft Foods. [2]

Contents
1 Pronunciation
2 History
3 Products
4 Business
4.1 Management
4.2 Earnings
4.3 Joint ventures
5 Controversy and criticism
5.1 The Mugabe connection
5.2 Marketing of formula
5.3 Compensation from Ethiopian government
5.4 Nestlé Purina in Venezuela
5.5 Bottled water
5.6 Genetically-modified organisms
5.7 Slave-labor involvement accusations
5.8 Outsourcing and price-fixing
5.9 Melamine in Chinese milk
5.10 Misleading advertising claims about Maggi noodles
6 See also
7 Footnotes
8 External links
8.1 Data

History

Nestlé headquarters in Vevey.The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In August of that year, Charles A. and George Page, brothers from Lee County, IL in the United States, established the Anglo-Swiss Condensed Milk Company in Cham. In September, in Vevey, Henri Nestlé developed a milk-based baby food and soon began marketing it. In the succeeding decades both enterprises aggressively expanded their businesses throughout Europe and the United States. (Henri Nestlé retired in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé company added condensed milk, so that the firms became direct and fierce rivals.


Henri Nestlé.In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain. World War I created new demand for dairy products in the form of government contracts; by the end of the war, Nestlé's production had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second most important activity.

Nestlé's logo used until 1970s.Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestlé.


The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), February, 2007.The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time frame, Nestlé came close to purchasing the iconic American company Hershey's, though the deal fell through.[3] Another recent purchase includes the Jenny Craig weight loss program for US$600 million.

In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share.[4]

In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5 billion.[5] [6][7]

In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini.[8]

Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale forms part of a broader US $39.3 billion offer by Novartis to fully acquire the world’s largest eye-care company.[9]

Products
Main article: List of Nestlé brands
Nestlé has a wide range of products across a number of markets including coffee (Nescafé), bottled water, other beverages, chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.

http://en.wikipedia.org/wiki/Nestl%C3%A9

What came to my mind instantly was "Good. Jobs for people in Mexico! Maybe that will encourage them to stay there rather than cross the border illegally." I wish there would be a ton of factories in Mexico that would employ its citizens--not companies here that relocate--I mean companies that make things to sell in Mexico and South America. We benefit by not taking in all the poor peasants who come here for social benefits this way.

They are getting more of our corporations and businesses, and we have been getting their people. The situation should be flipped, and then there would be more opportunities for Americans, and less threat to our nation from an overflow of a country's citizenry, illegally present, and getting welfare and free aid.

Psalm 91