Nestlé boosts Brazil confectionery production with major investments

A priority will be expanding and modernising production lines at factories in Caçapava and Marília in São Paulo, as well as in Vila Velha in Espírito Santo where more than more than 4,000 people are employed and are export hubs for over 20 countries.

Brazil’s competition authority has conditionally approved Nestlé’s €223 million (US$238 million) acquisition of chocolate company Garoto, more than two decades since the companies first closed the tie-up and 19 years since it originally decided to block the deal.

In Caçapava, Nestlé produces the popular KitKat brand, while in Vila Velha, production is focused on the Garoto brand of chocolates. The Marília unit manufactures biscuits.

Through its new investment package, Nestlé said it will also aim to accelerate the development of new products and expand ESG actions in its operations.

Cocoa Plan

The group is also set to expand its Nestlé Cocoa Plan sustainable sourcing programme, which has been in operation in Brazil since 2010. The scheme encourages regenerative agriculture practices in the cocoa supply chain, Nestlé said.

Patricio Torres, vice president of biscuits and chocolates for Nestlé’s Brazilian arm, said: “Nestlé’s Brazilian operation has been growing consistently and sustainably over the years. In the last 12 months alone, we have seen an increase of 24%, based on the high demand in Brazil for the chocolate and biscuit portfolio.”​