October 12, 2016

Nestlé has officially opened its newest infant formula factory in Jalisco, Mexico which is expected to triple the company’s production.

The company invested $245 million to see the 600,000 square meter plant built – its largest worldwide investment in the infant nutrition segment in the last 10 years. The factory, which is being called ‘Nantli’, or ‘mother’ in Najuatl, is expected to purchase 560 million liters of milk and 365 million liters of whey per year from 400 regional manufacturers and suppliers, and to generate annual income of 1.6 billion pesos (US$82.8 million).

“US$245 million is the biggest investment made by Nestlé in Mexico in a single infrastructure project, which represents our commitment to the country, its people and to our consumers,” said Laurent Freixe, Nestlé Head of Zone Americas.

This factory, which will be Nestlé’s 17^th in Mexico since the company began operations in the country in 1930, is built to have a low environmental impact with 85 percent of the electricity being supplied by wind power and solar energy, and including energy recovery technologies that will capitalize upon the heat and water used in processing.

“The opening of Nestlé Nantli is a major global milestone for our company. It uses the most advanced technology for manufacturing the highest quality child nutrition products, such as NAN, Good Care, Good Start, Nidal and Nestogeno,” said Heiko Schipper, Global CEO of Nestlé Nutrition.

The output from the plant will triple Nestlé’s infant formula production, with about 40 percent exported to markets across Latin America, the Caribbean and beyond.

Earlier this year, a report issued by Future Market Insights named Nestlé South America along with Danone S.A., Mead Johnson Nutrition, and Abbott Laboratories the major leaders in the global infant nutrition market, which is forecast to grow at a compounded annual growth rate (CAGR) of 10.1 percent over the ten years from 2016 to 2026, reports Dairy Reporter.

On a more immediate timeline, the infant formula market is expected to see annual growth of 9.9 percent through 2017 reaching a value of $18.1 billion, according to the report, Opportunities in Infant Nutrition Providing Our Most Precious Consumers Nutritious Products, released by Glanbia Nutritionals in November 2015. And although the mature markets of the EU, U.S., and Japan currently represent the largest global infant formula markets, the bulk of the growth will be in emerging markets including India and China, which are expected to see 14.2 percent annual growth through 2017 with sales of $9.9 billion.

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Lynda Kiernan