Swiss food concern Nestlé has opened a brand new Russian factory and the company is aiming to have all its factories operate at a “zero waste” level by 2020. It will now have an “in-depth screening” of all activities.
Eleventh Russian factory
Nestlé’s newest factory, a 60 million euro investment, has just opened in Viazniki, east of Moscow. It can produce 30,000 tons of Maggi products per year, manufacturing spices, sauces and instant soups.
It will be serving the local Russian market and export to the former Soviet states. This eleventh Russian Nestlé factory will employ 600 people.
"No more factory waste” by 2020
With 150 factories in Europe alone, Nestlé aims to have all of its European factories adhere to the “zero waste” policy by 2020. The announcement, coming from vice president Laurent Freixe who is also responsible for the European activities, was made at a sustainable foods congress at Brussels.
Nestlé already had 39 “zero waste” factories at the end of 2012. 25 of those were European, mostly in Great Britain and its home nation of Switzerland. “Zero waste” means that it no longer spills or burns factory waste without recuperating energy from it.
"Underperformers" will be sold
During the first 9 months of 2013, Nestlé had a turnover of some 55 billion euro, which is 4.4 % higher than the same period last year. For the full year, it estimates to have an organic growth of “about 5 %”.
Following the quarterly results, CEO Bulcke announced that Nestlé will be reviewing all of its activities: those that do not perform on a satisfactory level will be sold. “Optimizing our portfolio, containing 1,800 sectors, is not a novelty”, Bulcke stated. The review will however be done more thoroughly than in the past.
He refused to name names, but analysts believe energy bar producer PowerBar, dermatology specialist Galderma and Herta, known for its pastry and pizza’s, might be pushed aside.