Categories Earnings, Retail

Following robust 2018 results, Nestle announces investment in the US

Missouri-based Purina factory will get a lift with international food giant Nestlé announcing a $115 million investment in the Bloomfield establishment.

The investment that Nestlé announced on Thursday, aims to bump up the production of Tidy Cats brand that makes cat litter. The brand has grown about 18% in the last four years, according to the Swiss food maker.

Nestlé’s latest push to strengthen its food and beverage business could be the reason for this move.

Last week, Nestlé had announced the global launch of a new range of coffee products under the Starbucks (SBUX) brand.
Including Starbucks capsules that uses Nespresso and Nescafé Dolce Gusto coffee platform, the new products — twenty-four in number — also has whole bean and roast and ground varieties.

This also marked the first official product launch since August 2018, when the two international giants agreed to join forces to create “a global coffee alliance.”

Nestlé will bring Starbucks coffee products to retail with the new deal (SOURCE: Nestlé )

Nespresso President Patrice Bula weighed in, “Our two teams have done an outstanding job in just six months developing a range of new and exciting premium coffees, crafted with care and passion, combining Nestlé’s coffee and system know-how with the Starbucks coffee, roasting and blending expertise.”

“With Nescafé, Nespresso and Starbucks, Nestlé now has the best coffee portfolio to delight consumers around the world,” he added.

READ: Domino’s Pizza stock FALLS as Q4 earnings miss estimates

Nestlé has started rolling out these Starbucks products in international markets such as Asia, Europe, Latin America, Middle East, apart from the US.

Earlier this month, Nestlé announced its FY 2018 results. For the year, total reported sales grew 2.1% to about $91.25 billion (~ 91.4 billion Swiss Franc), generating a 45.5% jump in earnings per share. According to the Swiss giant, stronger momentum in the US and China helped the organic growth of the company — both being the two largest Nestlé markets.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight