Nestlé’s Latest Facility Aims to Meet Complex Consumer Demands
Nestlé USA has opened a new beverage factory and distribution center in Glendale, Ariz. The facility will produce creamers for several of the company’s brands, including Coffee mate, Natural Bliss, and Starbucks, with the potential to expand production to other beverages in the future.
In addition to broadening the scope for meeting more complex consumer demands, the site is also equipped to better bolster sustainability efforts and support Nestlé’s broader commitments in this space.
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Plans for the facility were originally drawn up in 2022 and, at the time, the company said the location was picked because of its proximity to customers and consumers in the western U.S. and would thus reduce transport timelines and emissions.
The new location is Nestlé USA's 20th food and beverage factory – the latest in its more than $3 billion investment to build out manufacturing capabilities across the country over the past several years.
Meeting Consumers’ Coffee Needs
The company, like many CPGs, is focused on meeting the needs of today’s “choiceful” consumers – balancing price sensitivity with opportunities for premiumization. Recent data from the National Coffee Association shows that 81% of coffee drinkers consume coffee at home, compared to just 36% who consume it elsewhere.
To meet these consumers, companies like Nestlé say they are focusing on offering a variety of creamer options to encourage customization and experimentation, along with seasonal flavors like pumpkin spice and peppermint to meet these changing tastes.
Daniel Jhung, president of coffee & beverage for Nestlé USA, said that the new facility would help drive these efforts, and was designed with “with the flexibility needed to support innovation, and will play a key role in helping us deliver for our customers and consumers now, and in the future.”
Tech-Enabled Sustainability Drive
The facility not only focuses on meeting evolving consumer preferences, but also forms part of Nestlé's bigger sustainability picture.
The Arizona facility is designed with advanced water management tools that aim to recycle and repurpose up to 75% of its treated process water, with ongoing efforts to enhance these capabilities, the company says.
As part of a collaboration with students and researchers at Arizona State University, the company is exploring water management technologies and strategies for optimizing waste streams.
The facility is also producing recyclable creamer bottles made from “food-grade” recycled plastic and plans to operate as a zero-waste site by recycling, composting, or recovering energy from materials that would otherwise go to landfills. The factory also plans to use renewable electricity.
Coffee is a key focus area in terms of sustainability for the company. Last year, Nestlé outlined how they were using data science- and AI-powered innovations to grow more climate-resilient plants and boost sustainable coffee cultivation.
The new facility in Glendale is Nestlé’s third in Arizona, joining Nestlé Purina in Flagstaff and Nestlé Health Science in Prescott.
