To Press Releases listAug 28, 2011
- “Nestlé is committed to Thailand for the long-term and we are optimistic about the country’s future prospects” – Mr. Paul Bulcke, CEO, Nestlé S.A.
- To invest Bht 3.5 billion in the next two years
Bangkok (29 August 2011) - Mr. Paul Bulcke, Chief Executive Officer of Nestlé, S.A., headquartered in Vevey, Switzerland, yesterday announced major investment plans for Thailand during a two-day visit as part of a regional review meeting conducted in Bangkok with more than 180 Nestlé executives attending.
Mr. Bulcke said, “Nestlé’s business in Thailand is expanding well, with over 10% growth during 2010. That growth has come from the confidence that the Thai consumer places in our brands and products as well as from our exports of made-in-Thailand products to over 44 countries in the region and beyond.”
“Our worldclass facilities in Thailand manufacture products to the highest global standards which has helped us sustain a very high level of exports that exceeded Bht 4.4 billion during 2010,” he said.
“In addition, the sophistication of Thai consumers, and their constantly increasing focus on higher quality products with greater health and nutritional benefits, is giving our company an increasing competitive advantage and helping to fuel the growth of our domestic sales,” added Mr. Bulcke.
“As a result of both strong domestic and export performances we are committing to continue our investment in Thailand over Bht 3.5 billion during the next two years, with the majority of that investment going into expanding our production facilities, particularly in coffee and ice creams, as well as establishing a Nestlé Quality Assurance Centre,” he said.
Mr. Bulcke added, “Thailand has a very important role to play in Nestlé’s asian and global strategy, as Thailand also looks after Nestlé business in the region. The purpose of my visit is to affirm to the team in Thailand Nestlé’s commitment to Thailand for the long-term, our confidence in the future of the Thai economy and our optimism in the considerable potential of the Thai market and Indochina Region.”
“We know that the key to further success in this market lies in understanding and best serving the rapidly-evolving needs of Thai consumers and, at the same time, the communities in which we operate, by doing so we keep adding value to everything that we do.” he said.
According to Mr. Bulcke, as part Nestlé’s commitment to sustainable growth in Thailand, the company is accelerating programmes around its “Creating Shared Value” concept which focuses on creating value for society at the same time as the company’s shareholders.
“Creating Shared Value is a fundamental part of Nestlé's way of doing business that focuses on specific areas of the company's core business activities – namely nutrition, water, and rural development – where value can best be created both for society and for shareholders. For example, in the next five years we will purchase coffee directly from over 12,500 farmers in the main coffee-growing areas of Thailand.
This will help local coffee growers obtain favourable prices for their crops and gain access to financial and technical assistance. We also cover half the cost of their purchases of high productivity plantlets. While helping farmers, it also helps Nestlé by giving the company access to higher quality coffee and a more reliable supply. It’s a win-win arrangement that makes for a sustainable model of community support,” he said.
Mr. Bulcke said that Nestlé will increase its distribution of coffee plantlets to be around 6,000,000 plantlets within five years.