Company plans to invest
• US$4.0m in plant, equipment
• US$0.5million in staff training
Rapheal John-Lall
Published:
Thursday, March 17, 2016
Despite the economic downturn of the country, Swiss transnational food and beverage company Nestlé says it will continue to invest in its plant and the country in general, says the company’s country manager, Michel Beneventi.
“Nestlé will invest roughly US$4.0 million (2016 and 2017) in plant and equipment, and US$0.5 million in training for staff. We will also continue to invest in the partnership with our milk farmers. Each year we invest about $2 million to support and improve our farmers’ operations,” he told the Business Guardian on Monday in an email statement.
According to Beneventi, in a recession companies do not have to necessarily cut staff and other expenses to survive in the market.
“Going through a recession for Nestlé is not about cutting staff, it is about efficiency. In these difficult times we will seek even greater efficiency and effectiveness by eliminating waste and improving performance and productivity. A recession is not the time to freeze operations.
“To succeed and thrive you must continue to invest and move forward. This is what Nestlé is doing and will continue to do. We will succeed because we have very, very good people, and very good brands thanks to our continuous investment in innovation and staff.”
Speaking about Nestle’s recent expansion in T&T, Beneventi said the company has invested millions of dollars in the last few years.
“New polyethylene terephthalate (PET) bottle lines for the production of our new Orchard Vibe calorie conscious were introduced at the Valsayn factory in late 2013 and new Tetra lines in 2014. From 2011 to 2015, we invested approximately US$30 million in improvements and new equipment to our Valsayn factory.”
Nestlé T&T’s Valsayn factory manufactures several lines of milks and flavoured milks, including its full cream UHT milks made from 100 per cent fresh local cow’s milk and low fat UHT milks, as well as its Svelty and Omega milks. They also manufacture the totally local line of Orchard juices and juice drinks.
Beneventi said Nestlé imports products from its Caribbean operations in the Dominican Republic and raw materials from Belize. Additionally, they import finished products from other Nestlé operations in Latin America, Europe and Asia.
He said it is not commonly known but they actually export their milks and juices regionally.
“We distribute hundreds of different products, from chocolates and coffee to cereals and pet food. Nestlé T&T does not import from any of our other territories in the Caribbean. We import from our Latin American operations as well as Europe and Asia.”
Dairy Operations
Nestlé has been involved in the local dairy industry since its inception in 1962, he said.
“In fact, we were asked by Prime Minister Eric Williams to help develop a dairy industry in T&T. Dairy farmers play a vital role in ensuring that the highest quality milk is available for the production of Nestlé’s wide range of locally produced milk products. Nestlé deeply values this relationship and strives to do more for the farmers and communities who supply us with milk, through a variety of programmes and activities. These include training, seminars and a special dairy development programme that helps farmers develop sustainable and profitable milk production.”
According to Beneventi, Nestlé conducts regular training sessions for all of its milk suppliers on topics ranging from improving milk quality to animal health, as well as special bi-annual seminars highlighting farmer achievements in productivity, efficiency and sustainability, and tackling issues affecting the local industry, such as trade tariffs.
Nestlé’s dairy development programme aims to help dairy farmers develop sustainable and profitable milk production in a shared-value relationship. This programme was initiated on 22 farms with an average farm size of 22 cows in 2009 and continues today.
The programme implements modern, technology-driven approaches to feed and nutrition, fertility and the health of dairy animals while, at the same time, developing the entrepreneurial capacity of producers. Nestlé’s Dairy Development Programme aims to create a new foundation for a sustainable dairy farm business in T&T.
Performance
Beneventi said Nestlé T&T is doing “very well.” Internationally, Nestlé’s targets are set using something called The Nestlé Model. This seeks to achieve for each year:
• 5 to 6 per cent organic growth
• Improved trading profit margin
• Improved underlying earnings per share
• Improved capital efficiency
“In 2015, Nestlé T&T met and exceeded the Nestlé model in terms of T&T operations. That includes growth in excess of six per cent,” he said.
Nestlé Standards
Beneventi said Nestlé products are of the highest quality and standard and, in many cases, they exceed local food standards and requirements.
“At our Valsayn factory, Nestlé’s factory uses an “aseptic process” to ensure quality of our products and packaging which ensures that everything in the production chain is commercially sterile, hygienic, and free of harmful bacteria. That includes food and packaging materials, all machinery and the environment in which the packaging takes place. Our unique tetra pak system is just the final step to ensure total product safety.”
He said Nestlé’s labelling also gives the company an edge.
“Nestlé is extremely careful in that we strive only to make true claims about our products. If you look at our labeling you will see that we go a step further by adding a Nestlé nutritional compass onto our labels. This gives the consumer at-a-glance information to help them make healthy decisions and is unique when it comes to labelling in T&T.”
Company profile
Nestlé has been in T&T for 102 years. Its history in T&T began in 1914 when Nestlé and the Anglo-Swiss Milk Company of Switzerland established a trading agency in T&T in Marine Square (now Independence Square), Port-of-Spain, to distribute Nestlé products for which there was growing demand.
In 1959, then premier, Dr Eric Williams turned the sod to launch the construction of Nestlé’s Valsayn Factory.
In 1962, local manufacture of Nestlé products began and the company has been manufacturing here ever since.
Nestlé employs 500 permanent employees and has spent more than $4 million in training over the period 2013 to 2015.
Business Guardian
Nestle brand ambassador Louange Davis pours a glass of milk for Nestle's country manager, Michel Beneventi. Looking on, from left are brand ambassador, Amanda Riley, Nestle senior consumer marketing manager-Dairy, Alana Stewart Gomez and Nestle's corporate communication manager, Denise d'Abadie, as they pose for a photo during Nestle's milk campaign launch held at Nestle T&T Ltd, Churchill Roosevelt Highway, Valsayn on February 29. Photo: Shirley Bahadur