NESCOR is developing a new food production plant in Mariel, Cuba.

The company is a joint venture (JV) of Nestlé and Cuban food company Corporación Alimentaria (Coralsa). The new facility will produce a range of Nestlé products, including cereal-based snacks, roasted and ground coffee, culinary seasonings and powdered drinks.

The first stone for the CHF54m ($54.9m) project was laid in November 2017.  Construction of the facility is expected to be completed by the end of 2019, while operations are expected to commence in the first half of 2020.

The food production plant is expected to employ approximately 185 people in the first year of operation, which is anticipated to increase to 260 by the third year of operation.

Location details of NESCOR food production plant

NESCOR’s food production plant is being developed in the Mariel Special Development Zone (Mariel ZED) in Mariel, 45km west of Havana, Cuba.

The zone was developed to serve as a production and logistics platform for international companies.

Mariel ZED is placed in a strategic geographic location at the centre of the Caribbean Sea. It provides easy access to various maritime commercial traffic routes in the Western Hemisphere.

NESCOR food production plant details

The NESCOR food production plant will be a two-storey building covering a total area of 602,779ft². The manufacturing area will be spread over two floors covering an area of 139,930ft².

The facility will have a production capacity of 18,000t per year, including 12,000t of roasted and ground coffee. Establishing a production centre in Cuba will enable Nestlé to localise its production and market its products at a lower price.

“The facility will have a production capacity of 18,000t per year, including 12,000t of roasted and ground coffee.”

The facility will also help Nestlé meet growing consumer demand for its products in Cuba and the Latin Caribbean region, while strengthening its presence in the country.

Details of products manufactured at the Mariel facility

The Mariel facility will produce Nestlé’s Nescafé® coffee brand and Cuban roast and ground coffee brand Serrano. It will also produce Nestlé Fitness® cereal-based snacks, Nesquik® powdered drink mix and Maggi cooking aids.

The new facility will also enable Nestlé to develop new product categories, which have a high demand in the country. The company plans to introduce nutritional products in the country under its nutrition, health and wellness strategy.

Marketing commentary on NESCOR

Nestlé commenced operations in Cuba in 1908 and currently operates two manufacturing facilities.

The JV produces and distributes its products in Cuba, and imports them through a representation office named Silsa Dominicana.

The NESCOR JV is the third JV to be formed by a Switzerland-based company in Cuba and the first to be located in the Mariel ZED.

The company commenced temporary operations in June 2018 through a headquarters in the logistics activities zone of the Mariel ZED.

Temporary operations will enable the company to market coffee, biscuits and culinary Nestlé products in the country before the food production plant commences operations. The JV will market its products through retail stores operated by companies such as CIMEX, Caracol, TRD Caribe and Palco.