Nestlé to invest CHF 310M in Brazilian infant, medical & adult nutrition by 2028
Key takeaways
- Nestlé is investing CHF 310 million by 2028 to expand its health and nutrition operations in Brazil.
- A new factory in Ituiutaba will produce infant formula for domestic and export markets starting in mid-2028.
- The plan includes upgrading the main hub in Araçatuba and increasing whey production by 15% by 2029 to meet growing demand.
Nestlé is planning to inject CHF 310 million (US$384 million) by 2028 into its nutrition and health segment in Brazil. The capital will be directed toward the construction of a new manufacturing site in Ituiutaba, Minas Gerais, in line with Nestlé’s plans to scale capacity in one of its fast-growing categories.
Representing an investment of approximately CHF 94 million (US$116.4 million), the new plant in Ituiutaba will produce infant formula for local Brazilian and export markets.
The investment plan includes upgrades to Nestlé’s factory for nutrition and health products in Araçatuba — its main hub for infant, medical, and adult nutrition products in Brazil — as well as the expansion of key ingredients.
Nestlé also plans to increase its whey production by 15% by 2029 to help meet growing demand for infant nutrition products in Brazil.
“Nutrition is one of Nestlé’s key categories globally today, and accounts for around 20% of Group sales,” says Jeff Hamilton, CEO at Nestlé Zone Americas.
“Brazil is a strategic market for this business, and this investment will expand local production capabilities while increasing access to high-quality, science-based nutrition products.”
Operations to begin in 2028
Launching its operations in the second quarter of 2028, the new Ituiutaba factory will create approximately 100 new jobs, according to Nestlé. It will be the company’s second facility for infant nutrition in Brazil.
Additionally, this plant will be equipped with advanced digital and automation technologies to enhance efficiency, product quality, and food safety.
The investment follows Nestlé’s recent announcement that it will divest its mainstream Vitamins, Minerals and Supplements business — dubbed its “Holistic Health portfolio” — to Yellow Wood Partners for US$1 billion.
Subject to applicable regulatory approvals, that transaction is expected to close by the first half of 2027.
In other moves to scale this year, Nestlé announced a CHF520 million (US$641.9 million) investment in a pet food plant in Mantova, Italy. The site will begin manufacturing super-premium wet foods for cats and dogs in 2029 to meet a growing demand for pet food across Europe.
