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Milo

Nestle to boost marketing budgets along with Malaysia expansion plans

Nestle Malaysia is set to spend the RM207million to extend its noodles and new product production lines, investing further in its operations in the market, according to The Star.

Nestle has a total of nine plants in the region, operating seven in Malaysia.

Managing director Alois Hofbauer was also quoted as saying that Nestle plans to spend RM207million to extend its noodles and new product production lines, as well as completing its Sri Muda plant. The plant is expected to be fully operational by August 2015 and was expected to double its ready-to-drink manufacturing capacity.

Nestle commands a 14.5% share in the food and beverage sector last year in the F&B sector, Hofbauer said, and it targets to raise this to 15% this year. This is expected to ramp up the production of products such as Milo and Nescafe in these factories.

This is substantially better than other Nestle units globally that usually command only 3 to 4% share of the food and beverage markets in their respective countries, according to CIMB Research, added The Star.

This will also be accompanied by “strong marketing investments”, a spokesperson told A+M, adding that the company would be looking at boosting marketing budgets.

“Nestle’s approach has always been to deliver successful launches of new products and go big and bold on consumer campaigns and promotions as these are key enablers to drive future business growth,” she said.

Last year, it spent a record RM362 million to build a new factory, said The Star.

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