SUBSCRIBE

Breaking News on Dairy Processing & Markets

News > Manufacturers

Repackaging coffee, powedered milk and cocoa

Exclusive: Nestlé on why Africa will be its focus for modular factories

Post a comment

By Jenny Eagle+

09-Jul-2014
Last updated on 09-Jul-2014 at 10:40 GMT

Alfredo Fenollosa
Alfredo Fenollosa
Loading...

In an exclusive interview with FoodProductionDaily, Alfredo Fenollosa, technical head, Nestlé Asia, Oceania and Africa, tells us why the company is targeting Africa for the launch of its modular factory concept.

The design for the factory is made up of easy-to assemble components and can be built in half the time of a traditional building for about 50%-60% of the cost including a ready-to-use generator and boiler, staff canteen and changing rooms for employees.

Cheaper way to enter the market

We developed this concept because we wanted to increase the speed of implementation of new facilities,” said Fenollosa.

We were looking for a fast, flexible and cheaper way to enter some developing countries.

Africa is one of the best places for this kind of initiative because it is a high risk in terms of business. This is the best way to get into the market here even if it is small to begin with, we want to be there because there is a business opportunity there we want to exploit.”

Fenollosa added the first areas it will target are the sub-Saharan Africa countries Mozambique, Malawi, Rwanda, Tanzania and Uganda.

The modular concept will be implemented here due to lack of infrastructure. We will start with a modest business as a small investment to see how the categories develop. If it works we will look at a more permanent infrastructure.

Limited investment

Limited investment is key because we can afford to do it in this kind of economy that is still emerging in a developing country. We will be implementing the first factory in the next one to three years’ time. We are just waiting for the first kind of business case that requires this type of factory.”

He added Nestlé will target ‘simple categories’ that do not require a lot of processing and look towards ‘more mixing and packaging and repackaging’.

The modular factory concept is very flexible in terms of repacking coffee and milk powder. We want to do it locally, generating value at the local level, buying raw materials. It’s only adapted to categories like beverages and cocoa, but not fully fledged processing that requires a big manufacturing factory.”

Fenollosa said with bigger countries there is a ‘more solid economy’ which is different to what it is trying to achieve with the modular design.

Later, we will work on a more solid solution of bricks and mortar. For now, this is an easy way to try to see how it works and what kind of products consumers want in this environment. If this works we will consolidate the factories in a different way but for now, this is good for emerging economies.”

Subscribe to our FREE newsletter

Get FREE access to authoritative breaking news, videos, podcasts, webinars and white papers. SUBSCRIBE

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

CO YO Coconut Milk Ice Cream alternative dairy

CO YO launches coconut milk ice cream after demand soars for alternative dairy

Start-up company Planet Coconut has seen an increase in demand for its CO YO...

Sainsbury's listings at 19, sports drinks at 24: Overly comes of age

Sainsbury's listings at 19, a sports drink launch at 24: Overly entrepreneur on guessing Justin King's email and casting off wide-eyed innocence

Young entrepreneur Chris Hannaway and childhood friend Will Hammersley launched frozen yogurt brand Arctic...

Nestlé Africa modular factories

Exclusive: Nestlé on why Africa will be its focus for modular factories

In an exclusive interview with FoodProductionDaily, Alfredo Fenollosa, technical head, Nestlé Asia, Oceania and...

Psychobiotics can feed gut-brain health axis: 'It’s really an exciting frontier,' says professor

Psychobiotics can feed gut-brain health axis: 'It’s really an exciting frontier,' says professor

Professor John Cryan

Chair and head of the Department of Anatomy and Neuroscience,...

UHT 'preferred format' to meet Vietnam rural distribution challenges

UHT 'preferred format' to meet Vietnam rural distribution challenges: Tetra Pak

Bert Jan Post

Managing Director , Tetra Pak Vietnam

Packaging differentiation 'a key point' for yogurt brands: Arcil

Packaging differentiation 'a key point' for yogurt brands: Arcil

Vincent Altazin

Senior Area Sales Manager, Arcil

GEA Procomac trials breakthrough White & Safe milk bottle in Italy

GEA Procomac trials breakthrough White & Safe milk bottle in Italy

Paolo Ventrelli from GEA Procomac tells us that the firm’s White & Safe bottle...

EU chia oil approval will open up 'limited' dairy use: Ingredia

EU chia oil approval will open up 'limited' dairy use: Ingredia

Aurélie Vromaine

Product Manager, Ingredia Nutritional

Tetra Laval to open Dairy Hub in Cape Verde

Tetra Laval to open Dairy Hub in Cape Verde

Tetra Laval plans to open a Dairy Hub in Cape Verde, off the coast...

Hood: Sky’s the limit with aseptic beverage packaging

Pete Spanedda

Vice president of dales, HP Hood

Bürkert FloWave dairy industry

Bürkert FloWave starts field tests in the dairy industry

Bürkert FloWave, which measures the flow of a liquid in a pipe, is being...

Global probiotics business is booming, while Europe focuses on blends and 'piggybacking'

Global probiotics business is booming, while Europe focuses on blends and 'piggybacking'

Strong growth in the Americas and Asia is helping the probiotics industry to strong...

Nutrition Capital Network takes venture to Vitafoods Geneva

Nutrition Capital Network takes venture to Vitafoods Geneva

Grant Ferrier

Principal, Nutrition Capital Network (NCN)

Marketing whey protein to the elderly 'challenging': Davisco Foods

Marketing whey protein to the elderly 'challenging': Davisco Foods

Polly Olson

Vice President of Business Development, Sales and Marketing, Davisco Foods...

Innovation success recipe: Respect consumers and draw inspiration from the unknown

Innovation success recipe: Respect consumers and draw inspiration from the unknown

Understanding consumer expectations and respecting these, combined with a boldness to draw inspiration from...

Food Vision 2014: Bridge knowledge gaps, overcome change and work sustainably

Food Vision 2014: Bridge knowledge gaps, overcome change and work sustainably

What is the future of food? Simple communication of complex advances will be crucial,...

Innovation for today: Digital tech empowers industry to innovate

Innovation for today: Digital tech empowers industry to innovate

Chris Cornyn

founder & president, DINE Marketing

Global probiotic market to add 50% to €33bn by 2018: Analyst

Global probiotic market to add 50% to €33bn by 2018: Analyst

Ewa Hudson

Global head of health and wellness research , Euromonitor International

Festive video insights: Mintel experts offer up highlights and predictions

Festive video insights: Mintel experts offer up highlights and predictions

With 2013 fast drawing to a close and 2014 just around the corner, we...

Key Industry Events

 

Access all events listing

Our events, Events from partners...