Dive Brief:
- Nestlé USA this week opened its $675 million beverage factory and distribution center in Glendale, Arizona which it first announced three years ago.
- The facility, which is creating 300 jobs, will produce creamers for several brands, including Coffee mate, natural bliss and Starbucks. Nestlé said the location could expand to additional beverages in the future.
- The expansion comes as consumers turn to coffee and creamers beyond their normal morning routines to other drinking occasions throughout the day. The new location marks Nestlé’s 20th food and beverage factory in the U.S.
Dive Insight:
Nestlé is a major player in the coffee category, with brands ranging from Blue Bottle and Seattle’s Best to Nescafé and Nespresso. Coupled with its vast creamers portfolio, the global food and beverage giant has a vested interest in keeping shelves stocked as demand for these offerings increases.
Nestlé estimated more than 70% of consumers whiten their coffee, a number that is expected to climb as younger generations drink more of the caffeinated beverage. Demand for creamers intensified during the COVID-19 pandemic and has remained robust as the coffee-at-home habit has become more ingrained as people seek to use the machines, such as Nestlé’s Nespresso, that they purchased.
“Coffee culture is booming across the U.S. as consumers seek more options for customization and experimentation when it comes to their coffee at home,” Daniel Jhung, president of coffee and beverage for Nestlé USA, said in a statement. “As the definitive leader in the refrigerated creamers space, we are focused on delivering on those consumer needs to drive the growth of our business and the category.”
The new facility also is expected to bring Nestlé several other benefits.
The factory incorporates several different sustainability measures. These include water management tools to recycle and repurpose up to 75% of its treated process water, produce bottles that are recyclable and made from food-grade recycled plastic. The plant also uses renewable electricity to help reduce carbon emissions, and Nestlé has committed to having zero emissions across its global operations by 2050.
The 630,000-square-foot Arizona facility has advanced technology and digital tools, enabling the flexibility to shift production based on changing consumer needs, trends and seasonality, Nestlé said. In addition, the factory provides the company with proximity to customers and consumers in the western U.S., reducing transport timelines. Currently, much of Nestlé’s creamers are made at a plant in Indiana.
