New Beverage Factory and Distribution Center Opens in Arizona
- Nestlé USA has officially opened its new $675 million beverage factory and distribution center in Glendale, Arizona. This project was initially announced three years ago.
- The facility, which is expected to create 300 jobs, will focus on producing creamers for popular brands like Coffee mate, natural bliss, and Starbucks. Nestlé also mentioned the possibility of expanding to additional beverage offerings in the future.
- This expansion comes at a time when consumers are incorporating coffee and creamers into various parts of their day, not just during the morning. With this new location, Nestlé now operates 20 food and beverage factories in the U.S.
Nestlé’s Position in the Coffee Market
Nestlé is a key player in the coffee industry, with a wide range of brands from Blue Bottle and Seattle’s Best to Nescafé and Nespresso. Given their extensive creamers portfolio, the company is committed to meeting the growing demand for these products.
The company estimates that over 70% of coffee drinkers use creamers, a number that is expected to rise as younger generations consume more coffee. The demand for creamers surged during the COVID-19 pandemic and has continued to remain strong as the at-home coffee trend persists.
Daniel Jhung, president of coffee and beverage for Nestlé USA, highlighted the growing coffee culture in the U.S. and the need for customization and experimentation in home coffee consumption. Nestlé aims to cater to these consumer preferences to drive business growth and enhance the category.
Aside from meeting consumer demands, the new facility also incorporates various sustainability measures. These include water management tools to recycle up to 75% of treated process water, recyclable bottles made from food-grade recycled plastic, and the use of renewable electricity to reduce carbon emissions. Nestlé has set a goal of achieving zero emissions across its global operations by 2050.
The 630,000-square-foot Arizona facility is equipped with advanced technology and digital tools, allowing for production flexibility based on changing trends and consumer needs. The strategic location in the western U.S. provides Nestlé with closer proximity to customers, reducing transport times compared to their Indiana plant where much of their creamers are currently produced.