Nestlé to strengthen supply chain in Russia

Swiss food giant Nestlé is investing more than CHF29m ($30m) in new distribution facilities in Russia in order to strengthen its supply chain, a move which is expected to create about 100 new jobs.

The investment is part of the company’s efforts to cater to the increasing demand for its products in the country and better serve its consumers across Russia and other Commonwealth of Independent States (CIS) countries.

As part of the investment, Nestlé is expanding its distribution centre at its manufacturing facility in Vorsino in Kaluga.

The distribution centre will offer a wide range of dry grocery items sold by Nestlé in Russia, including Nescafé coffee, Maggi culinary products, Nestlé infant nutrition and Bistroff cereals as well as pet food products from Nestlé Purina.

The new facilities are expected to be operational in October this year.

Nestlé Russia chief executive officer Maurizio Patarnello said that the investment is a crucial step in strengthening the company’s supply chain in Russia.

"We believe in Russia’s long-term potential, which is why we continue to invest in the development of local facilities," Patarnello added.

The latest announcement was made at a ceremony to mark the official opening of a CHF40m ($41.44m) extension to its Purina PetCare factory on the Vorsino site.

In November 2012, Nestlé opened its first Mövenpick ice cream boutique in the country, which offers frozen treats as well as a wide range of salads, soups and hot meals.

In 2010, the company announced an investment of CHF60m ($62.1m) to construct a new production facility in the Vladimir region of Russia to produce a range of culinary products under the Maggi brand.

Nestlé offers a wide range of food and beverage products in Russia including infant food, ice creams, dairy products, chocolate and confectionery products, prepared foods, and pet care products.

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Image: Nestlé’s expanded distribution centre in Vorsino will offer a wide range of dry grocery items including Nescafé coffee, Maggi culinary products, Nestlé infant nutrition and Bistroff cereals. Photo courtesy of Nestlé.