Nestlé has unveiled plans to invest $150m to expand a production facility for frozen meals in the US.
The facility in Cherokee County in South Carolina will gain a production line for single-serve frozen meals.
Go deeper with GlobalData
In a statement, Nestlé said the upgrade will incorporate “enhanced automation and digital technology” to improve the site’s operational efficiency.
Factory manager Nicole Caldwell said: “This investment further solidifies our dedication to the Gaffney community, where Nestlé has been an integral part for nearly 45 years.
“It also reflects our continued commitment to enhance our US manufacturing footprint and in-house capabilities. These enhancements will enable us to meet the consumer demand for the beloved brands in our frozen meals portfolio.”
Last month, Nestlé announced plans to launch a range of frozen meals in the US based on Asian and Mexican cuisines as it looked to tap into “new flavours and food options”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataEarlier this year, Nestlé launched a range of meals in the US designed as a “companion” for those taking GLP-1 weight-loss medication.
Nestlé said the range of 12 SKUs will include frozen meals such as bowls with whole grains or protein pasta, sandwich melts and pizzas, all for a suggested retail price of $4.99 and under.
The Maggi maker does not uniformly disclose sales numbers for the different parts of its portfolio. When the company reported its 2023 financial results, it said it had seen “market share gains” in the North American market for frozen meals. However, it added: “In the US, growth in frozen food was close to flat, supported by Stouffer’s, Jack’s and Tombstone.”
Last month, when Nestlé reported its sales for the first nine months of 2024, the company cut its forecast for organic sales for the second time this year amid “soft” consumer demand.
Presenting his first set of results since becoming Nestlé CEO, Laurent Freixe lowered the company’s guidance for its 2024 earnings per share and the key underlying trading operating profit (UTOP) margin.
As Freixe simultaneously revealed a new geographical structure by scaling down Nestlé’s business ‘zones’ from five to three, he said organic sales growth is now expected to be “around 2%” for the full year.
