Nestlé will invest 310 million Swiss francs by 2028 to strengthen its nutrition and health operations in Brazil, one of the group's most important global markets and a country where demand for nutritional products continues to show significant growth opportunities. The plan includes the construction of a new factory in Ituiutaba, Minas Gerais, the modernization of existing facilities, and the strengthening of supply chains for certain strategic ingredients, with the aim of increasing local production capacity and supporting long-term business development.
Approximately 94 million francs will be allocated to the construction of the new Ituiutaba site, which will specialize in the production of infant formula for both the Brazilian market and exports. It is expected to become operational in the second quarter of 2028. The factory, which will be Nestlé's second dedicated infant nutrition facility in Brazil, will create approximately 100 new jobs and will be equipped with advanced technologies for digitalization and process automation, aiming to improve efficiency, product quality, and food safety.
Part of the resources will also be used to upgrade the Araçatuba plant, Nestlé's main Brazilian hub for the production of infant, medical, and adult nutrition products, strengthening its facilities and capacity to meet growing market demand. The program will also address the availability of raw materials required for production, with a particular focus on whey, an essential ingredient for numerous nutritional formulations, whose production capacity is expected to increase by 15% by 2029.
By strengthening its whey supply chain, Nestlé intends to secure adequate volumes to support its expansion, while simultaneously reducing potential supply constraints and creating new opportunities for suppliers and local producers. Nutrition currently represents approximately 20% of Nestlé's total global sales and is considered by the group to be a strategic category in which to focus investment, scientific expertise, and innovation.
Jeff Hamilton, Nestlé's CEO for the Americas, emphasized that Brazil plays a central role in this business and that the plan will expand domestic production, increasing consumer access to high-quality, science-based nutritional products. The new investment will enable the group to respond more seamlessly to Brazilian demand while also seizing export opportunities, strengthening the country's role within the multinational's international production network.
The construction of the Ituiutaba plant and the planned interventions in Araçatuba will create a larger and more specialized industrial structure, capable of integrating production, technology, and quality control throughout all stages of the process. Digitalization and automation should also allow for greater process traceability, more accurate controls, and more efficient plant management, helping to maintain the high standards required in the infant and medical nutrition sector.
The project will also have regional benefits through the creation of new jobs, the involvement of related industries, and the development of agri-food supply chains, thus combining industrial growth with a contribution to the economies of the affected areas. With this 310 million franc program, Nestlé is strengthening Brazil as one of its key nutrition and health hubs in the Americas, leveraging greater local production capacity to support innovation, domestic demand, and exports.
