Nestlé invested $340M to open its Nescafe coffee plant in Mexico

Nestlé announced the opening of its Nescafe coffee plant in Mexico on Tuesday, July 26. The Swiss food and beverage manufacturer shared it invested $340 million to build the facility.

The new Nestle Nescafe factory was constructed in Veracruz and generated 1,200 jobs in the city. With the new factory, Mexico has now become Nestle’s main coffee producer for its world-famous Nescafe brand.

The company said that the new plant has been fitted with the latest cutting-edge equipment and utilises green energy to lessen the consumption of water and energy. Nestle explained the factory will be using wastewater treatment systems to make sure that there will be 100% water recirculation, zero wastewater releases, and no waste will go to landfills, as per Food Dive.

The Nescafe coffee factory was also fitted with a biomass boiler so they can use the wastes from the coffee processing to generate energy that can, in turn, be used to power the place.

It was noted that the consumption of coffee in the United States has surged to a two-decade high as the Americans’ lifestyles and routines have changed - post-COVID. This information was released by the National Coffee Association after polling in March.

It was estimated that about two-thirds of Americans are now drinking coffee every day, and the frequency is even more than when they drink tap water and any other beverages. Since January 2021, the percentage of coffee drinkers went up by almost 14% based, on the survey. With this result, Nescafe apparently became the biggest beneficiary of the trend, and the demand is growing each day.

"With the inauguration of this plant, Nestlé is supporting close to 100,000 coffee producers in Mexico,” Andrés Manuel López Obrador, the President of Mexico, said in a speech as a special guest at the opening of the factory this week. “This demonstrates the importance of the public and private sectors working together to bring investment to our country."

Nestle Mexico’s executive president, Fausto Costa, further said in a statement, "The coffee factory is one of the most technologically advanced in the world and our company's most modern and sustainable coffee plant. At Nestlé, sustainability is a fundamental pillar of our purpose, and we are committed to taking actions that have a positive impact on our planet."