Nestlé Vietnam has inaugurated an expansion of its Milo chocolate malt beverage factory in Southeast Vietnam, following a CHF 35 million investment.
The expansion of the Binh An facility, a doubling of its production capacity, is aimed at meeting growing consumer demand for Milo and for other ready-to-drink (RTD) products.
The investment is part of Nestlé Vietnam’s strategy to strengthen its presence in the growing nutritional beverage sector in the country.
Wayne England, Chairman and CEO of Nestlé Indochina, said the investment was a reflection of Nestlé’s confidence "about the opportunities in Vietnam due to its young and dynamic population, expanding consumer market, and favourable business environment. We have a long-term vision and a firm belief in the potential of the country."
The Binh An expansion will also cater to new RTD products that will eventually be launched in the Vietnam market.
The company’s focus on the liquid beverages category follows its 2011 acquisition of Gannon’s milk and beverage processing facility in Dong Nai, which boosted Nestlé Vietnam’s presence in Vietnam’s beverage market.
Nestlé operates five factories in Vietnam with around 2,000 employees.