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Nestlé launches R79m local coffee mix production plant in Hammanskraal

Nescafe gold coffee mixes

Nescafe gold coffee mixes

19th July 2023

By: Marleny Arnoldi

Deputy Editor Online


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Food and beverage company Nestlé South Africa has invested R79-million into localising the production of its Nescafé Gold range of coffee mixes.

The company inaugurated its new plant in Babelegi, Hammanskraal, on July 18, which is also where Nestlé’s Maggi instant noodles and Cremora coffee creamer brands are manufactured.

The Nescafé Gold coffee mix range, which includes Cappuccino Original, Cappuccino Original Reduced Sugar, Cappuccino Salted Caramel Latte, Cappuccino Vanilla Latte, Cappuccino Hazelnut Latte and Cappuccino White Chocolate, used to be imported but can now be manufactured with 46% locally sourced ingredients, at a rate of 5 500 t/y.

Nestlé plans to also start locally producing the Ricoffy 3-in-1 coffee mix from next year.

Nestlé East and Southern Africa (ESAR) coffee and beverages business executive Carl Khoury confirmed that 90% of production was targeted for local consumption, while 10% would be exported to other African countries or further abroad.

Nestlé ESAR marketing manager Nivasha Pather said the launch of the coffee mixes plant solidified Nestlé’s commitment to industrial development and investment in the region, as well as its commitment to cater to consumers’ evolving needs.

She explained that the R79-million investment in the new plant comprised high-end automated equipment, as well as training of 27 newly appointed employees, including engineers and production staff.

Khoury pointed out that 67% of the new employees hail from Hammanskraal.

Nestlé aims to employ locally as far as possible. In South Africa, Nestlé has about 3 200 employees.

Nestlé ESAR chief engineer Sean Weavill told Engineering News that the coffee mix production process comprised the batching of raw materials into a mixer, which mixes at a high speed for one minute for homogeneity.

From there, the product is transferred to a section with 12-lane filling machines running at 50 cuts.

The material is then transferred to a counter for stick packing, which then moves into a carton and case packing process. The final packing process is undertaken manually.

Weavill explained that the creamer and boosters for the coffee mixes were locally sourced, while the coffee itself was still being imported.

“We are working on local solutions, with coffee manufacturing trials running at a factory in Estcourt to localise coffee as a raw material for the mixes as well,” he added.

Department of Trade, Industry and Competition investment promotion director Brian Soldaat commented during the launch event that localisation was a key tool to improve equitable spatial development, deepen industrialisation, grow the economy and transform the lives of people.

City of Tshwane economic development MMC Hannes Coetzee shared the sentiment, saying Nestlé had long been a solid foreign direct investor in the area, which contributes to community upliftment and opportunities for small to medium-sized service providers.

"The importance of revitalising South Africa's manufacturing sector, including its contribution to the economy and export promotion, is emphasised in key national policies such as the Reconstruction and Recovery Plan.

“We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy, Khoury stated.

Moreover, commenting on the company’s water use in Hammanskraal, where a cholera outbreak took place in May, Khoury said the company ramped up its chlorination and filtration efforts for continued safe-to-use water in its manufacturing facilities.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



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