Nestlé is investing 520 million in an animal feed plant in Italy
Keystone-SDA
Swiss food manufacturer Nestlé is expanding its pet food business and investing around CHF520 million in a factory and logistics centre in northern Italy.
From 2029, the site will serve as a hub for wet food for dogs and cats, as well as providing logistics services for Purina and other Nestlé brands.
The new plant in Mantua, northern Italy, is set to bring the number of Purina production sites in Europe to 15 and strengthen supply chains. Nestlé expects to achieve more efficient logistics, shorter transport routes and reductions in emissions, water consumption and energy use.
The project had already been approved by the European Commission last year. Italy is supporting the construction with state aid of €60 million.
According to the EU, the funding is intended to strengthen a more competitive and resilient agricultural sector, improve food security, support environmental and climate targets, and promote the economic development of rural regions.
Under Nestlé CEO Philipp Navratil, Petcare is one of the group’s four strategic growth areas. According to Nestlé, the business in high-quality wet food – particularly for cats – is growing by around 8%.
There are now around 111 million cats and 91 million dogs living in Europe. Pet owners are also spending increasingly more money on premium products. The European pet food market has an estimated value of just under CHF30 billion.
In Europe, this division now accounts for 29% of Nestlé’s turnover, while globally the figure stands at 21%. Earlier this year, Nestlé had already announced the construction of a pet food factory in Brazil at a cost of CHF370 million.
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Translated from German, reviewed by an English Department journalist.
