On the Street: Nestle Opens Biscuit Research Center
January 11/BMI Americas Food and Drink Insights -- Swiss food giant Nestlé has opened a new research and development (R&D) center for biscuits and cereal-based snacks in the Chilean capital of Santiago. The facility is to be a hub for R&D, focusing both on innovation and reformulation of existing products. CEO Paul Bulke said that it will allow for creative development in a "very important product category" and that it will help Nestlé "offer consumers in Latin America and beyond the choice of tasty, healthy, more nutritious biscuits."
Nestlé's biscuit unit generated sales of CHF1.4 billion in 2008, representing around 1.3% of the company's total turnover. The firm generates 60% of its biscuit sales in Latin America which explains why it has chosen to site a research hub in this region. The decision to site the plant in Chile is likely to stem from Nestlé's existing extensive production capacity in the country, which will facilitate the roll-out of new products. In particular, the firm has identified synergies between the new facility and its biscuit manufacturing plant in Maipu, which employs 1,200 workers.