Nestlé to build coffee-creamer factory in Arizona with the total cost of $675m
March 11 - 2022
Coffee Geography Magazine
Nestlé USA announced its plan to build a $675 million factory in Glendale to make creamers, including those based on oat milk, for Coffee mate, Starbucks and other brands. “Manufacturing in our state is surging and Nestlé's decision adds to this momentum, as well as bringing diversification to this fast growing sector of our economy," Doug Ducey, Governor of Arizona said in a statement. "We appreciate the partnership from state and local officials and look forward to contributing to the local economy and Glendale community for many years to come, including through the creation of over 350 jobs," Daniel Jhung, president of Nestlé USA's beverage division said on the announcement.
Daniel Jhung, president of Nestlé USA's beverage division
Creamers have seen steady growth during the pandemic, with that trend expected to continue. The company said the metro Phoenix factory will offer close proximity to millions of consumers in the western U.S., reducing transportation times and truck emissions. The facility is estimated to bring 350 jobs including engineers, manufacturing personnel and more in two years. The new Glendale facility is projected to start production in 2024, joining Nestlé USA's 14 other food and beverage factories across the country. The company is expected to receive up to $7 million in state tax incentives for its job creation as well as environmental protection responsibilities.
A projection shows the planned Nestle plant in Glendale, Arizona
Nestlé S.A. has invested nearly $3 billion in business development to expand its U.S. manufacturing operations, from building new factories and expanding existing ones to adopting operational changes to help meet sustainability targets. The new facility will be built to reduce water use and minimize waste while striving to be run entirely on renewable energy by 2025. In addition, Nestlé will use fully recyclable product packaging made from food-safe recycled plastic. It will be the company's most technologically advanced U.S. factory and distribution center according to the company’s statement.