Nestlé has unveiled plans to invest $150 million to expand a frozen meal production facility in the US.
The Cherokee County, South Carolina facility will have a production line for single-use frozen meals.
In a statement, Nestlé said the upgrade will include “enhanced automation and digital technology” to improve the site’s operational efficiency.
Plant Manager Nicole Caldwell said: “This investment further strengthens our commitment to the Gaffney community, of which Nestlé has been an integral part for almost 45 years.
“It also reflects our continued commitment to growing our U.S. manufacturing footprint and our internal capabilities. These improvements will enable us to meet consumer demand for the beloved brands in our frozen meal portfolio.”
Last month, Nestlé announced plans to launch a range of frozen meals based on Asian and Mexican cuisines in the US, tapping into “new flavors and food options”.
Earlier this year, Nestlé launched a range of meals in the US intended as a “companion” for those taking GLP-1 weight-loss medications.
Nestlé said the 12-SKU lineup includes frozen meals such as whole grain or protein pasta bowls, sandwich melts and pizzas, all for a suggested retail price of $4.99 or less.
The Maggi maker does not disclose sales figures for different parts of its portfolio in a uniform manner. When the company reported its 2023 financial results, it said it had seen “market share gains” in the North American frozen meal market. However, it added: “In the US, frozen food growth was broadly flat, supported by Stouffer’s, Jack’s and Tombstone.”
When Nestlé reported its revenue for the first nine months of 2024 last month, the company lowered its organic revenue forecast for the second time this year due to “soft” consumer demand.
Presenting his first set of results since becoming CEO of Nestlé, Laurent Freixe cut the company’s expectations for 2024 earnings per share and key underlying trading profit margin (UTOP).
While Freixe simultaneously unveiled a new geographic structure by reducing Nestlé’s business zones from five to three, he said organic sales growth is now expected to be “around 2%” for the full year.
“Nestlé Pumps $150 Million into US Frozen Food Factory” was originally created and published by Just Food, a brand owned by GlobalData.
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