Nestlé Vietnam has inaugurated an expansion of its Milo chocolate malt beverage factory in the southern province of Dong Nai, following a CHF35 million (roughly US$36.5 million) investment.
The expansion of the Binh An production facility, located in the Amata Industrial Park in the province’s Bien Hoa City, is aimed at meeting growing consumer demand for Milo and other ready-to-drink (RTD) products in the Southeast Asian country, the beverage producer said Friday in a press release.
The addition will double Nestlé’s production capacity at Binh An, according to the Swiss company.
“The investment is part of Nestlé Vietnam’s strategy to strengthen its presence in the growing nutritional beverage sector in the country,” it said.
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 favorable business environment.”
“We have a long-term vision and a firm belief in the potential of the country,” England said in a statement.
The Binh An expansion will also cater to new RTD products that will eventually be launched in the Vietnamese market, according to Nestlé.
The company’s focus on the liquid beverage category follows its 2011 acquisition of Gannon’s milk and beverage processing facility in Dong Nai, which boosted Nestlé Vietnam’s presence in the local beverage market.
Nestlé operates five factories in Vietnam with around 2,000 employees.
The Swiss multinational food and beverage company has so far invested $450 million in the Southeast Asian country.