Nestlé to invest PhP 4.3 billion in new Tanauan Factory

Nestlé Philippines Chairman and CEO John Miller announced in a press conference on July 2, 2010 that the company will invest PhP 4.3 billion over two years for a new factory to be built on a 27-hectare site in Tanauan, Batangas.

The construction of the new factory will start this month and is expected to be completed in March 2012. The facility will produce COFFEE-MATE Non-Dairy Creamer and BEAR BRAND Powdered Milk Drink. Mr. Miller said that demand for the two brands, both of which are market category leaders, continues to grow and the investment in the new factory will address the need to increase production. In 2010 alone, the domestic market demand for BEAR BRAND and COFFEE-MATE is projected to grow by 19% and 8%, respectively. Export of BEAR BRAND under the brand name EVERYDAY is also expected to grow by 38% this year.

The Tanauan factory, which is expected to help spur economic growth in the area, will directly employ a new work force of 170 initially, and generate hundreds of other jobs in sectors providing the facility with raw materials and services.

“Nestlé has been present in the Philippines as a part of everyday life for 99 years. The investment in the Tanauan factory starts a new chapter in Nestlé’s commitment to the country, as we look forward to the next 100 years of nurturing Filipino families by offering healthy and tasty products,” the chairman said. “We believe this investment is a clear demonstration of our full confidence in the Philippines. It is timely as the country restates its commitment to accelerate economic growth. As always, our strategy is guided by our belief in Creating Shared Value for all stakeholders.”

Apart from its latest investment, Nestlé is also continuing to invest in its four existing factories, particularly in technology and equipment upgrades to enhance capacities, in order to meet growing demand for its products. In 2009, Nestlé produced almost half a million metric tons of products in various categories that include coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream, chilled dairy, and breakfast cereals.

The company’s investments in the country during the last five years stand at close to PhP 10 billion. Some 80% of the investments have been deployed to its existing factories to generate higher efficiencies, create additional capacities, and safeguard the environment. The balance of 20% has been spent on sales infrastructure, distribution, and information systems.

Nestlé’s four manufacturing facilities in the country are the following:

• The Cagayan de Oro Factory which manufactures NESCAFÉ and BEAR BRAND;
• The Cabuyao Factory which manufactures NIDO, NESVITA, NAN, NESTOGEN, BEAR BRAND Choco, NESTLÉ All Purpose Cream, Ready-to-Drink MILO, BEAR BRAND Sterilized, and CHUCKIE;
• The Lipa Factory which produces MILO and NESTLÉ Breakfast Cereals; and
• The recently commissioned Pulilan Factory, which manufactures NESTLÉ Ice Cream and Chilled products.

The company’s Cabuyao, Cagayan de Oro and Lipa factories also serve as the Nestlé Group’s Export Centers for infant nutrition, filled milk powder and breakfast cereals, respectively. The factories manufacture these various products for Nestlé markets abroad. In the Nestlé Group, the designation of Export Center recognizes a factory’s world-class quality standards and efficiency levels.

“The designation of Export Center for the three factories is testimony to the world-class manufacturing capability and competence of Filipinos,” Mr. Miller said. “Our factories prove that the Philippines can compete with other countries in terms of quality, cost and reliability.”

Mr. Miller noted that in 2007, the Nestlé Group selected the Philippines as the site for its shared service center for financial and employee services requirements of Nestlé companies in the Philippines, Malaysia/Singapore, Indonesia, Indochina, Australia, New Zealand, South Africa and the Middle East. The shared service center is now known as Nestlé Business Services (NBS), located in Meycauayan, Bulacan. The NBS today has 500 employees.

Over the last five years, Nestlé Philippines has consistently grown, expanding by an average of PhP 4.6 billion per year. The company, which registered sales of nearly PhP 86 billion in 2009, paid some PhP10.6 billion in taxes to the government in the same year, an increase of 20% over the previous year. The Company is the second largest taxpayer in the country.

Nestlé Philippines, which is one of the key players in the fast moving consumer goods (FMCG) industry, is among the country’s top six corporations.

Related Stories:
Nestlé to invest P4.3B in new plant in Batangas
(Source: Inquirer.net)

Nestle to build P4-B factory in Batangas
(Source: abs-cbnnews.com)

Nestlé Phils. bares P4.3-billion investment to build creamer/milk factory in Tanauan
(Source: Manila Bulletin Online)

Nestle Philippines Choose Wellness, Choose Nestle TV Commercials

NESTLÉ Philippines "I Choose Wellness" Expo on July 3 to 4, SM Megamall, Megatrade Hall 2 & 3. 10 AM to 8 PM.

I Choose Wellness Expo 2010

Bring your family* and friends!
July 3 to 4, 2010
Megatrade Hall 2 & 3
5th Level, Mega B, SM Megamall

FREE ADMISSION!

*Per DOH-FDA Permit No. 0884 S. 2010,
participation of children below 3 years old,
pregnant and breastfeeding mothers are not allowed in this event.

Nestle Philippines TV Commercial: MILO "The Gift"

http://www.milo.com.ph/
http://www.nestle.com.ph/
http://www.nestle.com/

Acclaimed director Stephen Ngo brings to life the new MILO® Marathon TV commercial.

It tells the story of Aris, a young boy from the province who dreams of having his own pair of running shoes. He makes a paper cutout of his own foot, hoping to give it to a kind-hearted soul in exchange for a pair of shoes.

But as he writes his name on the cutout, a strong wind blows it away and he chases after it. He reaches the town plaza where the National MILO® Marathon is about to start. As he weaves through the crowd a runner grabs his cutout. To his surprise, the runner gives Aris a new pair of running shoes.

His dream is finally realized.

We end with Aris happily running in the MILO® Marathon.

For more info on the advocacy logon to http://www.milo.com.ph/.

Check out more Nestle Philippines TV Commercials at the Nestle Philippines YouTube Channel at http://www.youtube.com/nestleph.

Nestlé Phils. opens new P700-million ice cream plant in Pulilan, Bulacan

(Reprinted from April 5, 2010 article by Bernie Cahiles-Magkilat from Manila Bulletin Online

Nestlé Philippines (Inc.) has inaugurated its P700-million new ice cream and chilled dairy factory in Pulilan, Bulacan in a major initiative to beef up its production capabilities to serve local market demand with worldclass quality products appealing to the Filipino taste.

NPI chair and CEO John Miller said that the company’s investments in Pulilan and elsewhere in the country are made with a long-term view.

Miller said that as the world’s leading Nutrition, Health and Wellness Company Nestle is committed to continuously innovating and renovating its products, making them affordable and available wherever, whenever and however, and by communicating their nutritional benefits.

“Through all these, we hope to be able to help make a positive difference in the lives of our consumers as we stay true to our mission of nurturing generations of Filipino families. We look forward to a successful partnership with the town of Pulilan as we work together for the realization of this mission,” Miller said.

The 4.5 hectare state-of-the-art facility in Barangay Tibag, Pulilan was completed in a record 14 months.

Nestlé Ice Cream Factory Head Val Dizon said that the speedy completion of the factory was an organizational feat, considering that while construction was ongoing, production at the old Aurora factory continued, inventories of stocks had to be built up, and 220 personnel were transferred to the new site.

Dizon added that the goal for the new factory is to make it the benchmark facility for delivering world-class performance in the production of Ice Cream and Chilled Dairy.

NPI Technical Director Campo Van Beek cited the local government leaders and the residents of Barangay Tibag for their support, which made possible the quick completion and start-up of the factory.

He said that in operating the new factory, Nestlé would be guided by its global aim to Create Shared Value for all stakeholders.

Thank you, thank you, thank you

(Reprinted from March 26, 2010 "Ads and Ends" column of Nanette Diyco in BusinessWorld)

The schoolyear ends today, the best time to salute great friends in the advertising world who truly went out of their way to hop over to "faraway Loyola Heights" to share their very own "you’ll never get these from textbooks" wisdom with my advertising and integrated marketing students at the Ateneo University.

After a couple of courses on fundamental principles and integrated marketing management, Ateneo’s Advertising Track peaks with a seminar course that dramatically exposes my students to current topdogs and veritable icons in marketing. The lectures fall under the broad umbrella of "The Glorious Past, Present and Future of Philippine Advertising," And what is precious is that all of these topdogs intimately shared their innards and very personal learnings from successes as well as failures in their respective truly glorious careers:

Angel Samson Antonio, president & CEO of Bates 141; Merly Jayme, president and executive creative director of DM9 Jayme Syfu; Jika Dalupan, Pfizer vice-president and communications director; James Wallace, former chairman & CEO and presently global corporate consultant of Procter & Gamble; Ernesto Gatchalian, former president of JWT and Campaigns & Grey and now CEO of J. Romero; Kiran Vaswani, ex-CEO of Zenith Optimedia; Sandra Puno, senior vice-president and communications director of Nestlé; Triccie Guanzon, vice-president for media at GMA; and Eileen Araneta, marketing consultant and former regional head of Unilever.

After the crème de la crème, Melvin Mangada, executive creative director and managing partner of TBWA Santiago Mangada Puno provided the absolute piece d’resistance, the grand finale. Multi-awarded Melvin himself gave the final lecture in the brand new ultramodern offices of TBWA, the Agency of the Year, unselfishly unraveling to the students priceless tips on overall creativity and the uniqueness of the TBWA creative process.

As my own gratitude overflows, I myself was rewarded last night with an e-mail from my student, Kasey Albano. "I am currently taking up my internship at Leo Burnett under the Creative Department. (Note: This is a summer on-the-job training required by the university before graduation).

"So far, I’m glad to say that I’ve been having a blast. The perks are great, the people are friendly, and most of all, it’s awesome seeing all the things you have mentioned in class materialize before my very eyes!

"Two Fridays ago, I was invited by Executive Creative Director Raoul Panes and Creative Director Mike dela Cuesta to observe the post-production process that was involved in editing two of McDonalds’ latest TVCs. We went to Road Runner, where I met Steve Vesagas, who explained to me how they dubbed and edited TVCs. Margot Torres actually dropped by that evening, and I had the privilege of having dinner with her. Truly, it was a night I would never forget.

"Last Saturday was also quite memorable. This time, I had the privilege of attending yet another shoot for one of McDonalds’ upcoming TVCs. I saw how the food shots were made, and how the Creative Team was very much involved in every step of the process [they gave constructive comments to improve every single scene that was shot until it was suited to their liking]. Yet the highlight of my day was meeting the great Henry Frejas. It was a surreal experience, being in the same room with such a creative man.

"All this being said, I would like to thank you for all the nuggets of wisdom that you have shared during Ad Principles class. They truly placed my experiences into perspective. They made me appreciate my internship all the more. And in some ways, it assured me that maybe I am meant to be in this industry after all."

I think any facet of the communications industry, specially advertising, can only be enriched by these young hardworking creative men and women who are strategic thinkers, hungry to learn more but already steeped in profound philosophical thinking and values.

E-mail the author at nanettediyco@yahoo.com

From poor to entrepreneur through Nestle's BOW

(Reprinted from March 8, 2010 article of Malaya Business Insight)

Click here for the original article.

For more than 10 years, Payatas residents and siblings Cris and Jimmy Besas, and their cousin Julius Sagaral, eked out a meager subsistence as tricycle drivers.

Life was a hard grind. A workday meant waking up before sunrise with their children still asleep, to commute to their tricycle route in Cubao, scrambling to earn boundary and gas money before being able to take any of it home.

Today, the two brothers and their cousin are building better lives for themselves and their families as micro-entrepreneurs under a Nestlé program called Business on Wheels (BOW).

The three, who are called BOWERS, sell a range of Nestlé products to carinderias within a territory assigned to each, with continuing guidance, help and training to enable them to grow their operations and income. There are now hundreds of BOWERS nationwide, with the numbers steadily increasing.

"BOW was launched late in 2006 as an entrepreneurship livelihood program. The country has thousands of carinderias which Nestlé wants to serve better while helping our distributors to strengthen their coverage," says Sunny Yu, Head of Channel Category Sales Development of Nestlé Professional, the company’s business unit which focuses on out-of-home consumption and runs the program.

"Under Nestlé’s corporate strategy of Creating Shared Value for both the company and stakeholders in society, BOW is about enabling marginalized Filipinos to become entrepreneurs, to learn skills and confidence in developing their own businesses," Sunny explains.

The qualifications for BOWERS are simple: no educational background is necessary except that they can read and write; they should know how to drive a tricycle; they need to be able to talk to people; they have to raise P15,000 of capital for initial stocks; and most of all, they must be hardworking and persistent.

"The idea is to enable participants to start earning above minimum wage, then to nurture their businesses as various BOWERS are now doing," says Sunny.

BOWERS are taught the nuts and bolts of running a small business, such as managing funds and inventories, and conducting sales calls among customers. The carinderias in their territories are mapped out for them and they are trained to plan daily sales schedules and trips. Eventually, a BOWER can grow his business as much as he desires, acquiring more tricycles and routes as he reinvests his resources.

Potential BOWERS are recruited by word of mouth and evaluated for the strength of their commitment to minimize attrition. Apart from close training and supervision, each BOWER is provided with a partly subsidized tricycle carrier which sports Nestlé brands on its sides, and wears a uniform while doing business. A major attraction to BOWERS is the flexible working hours, since the best period for supplying carinderias is between 9:00 A.M. to 3:00 P.M.

Fellow Payatas resident Ronie Dacuag attests to this. Ronie was a bus conductor whose work sometimes took him away from home three days at a stretch, while his wife Elma toiled as a seamstress for P150 to P200 a day.

Often, their children had to fend for themselves at home. Both spouses, now BOWERS with thriving sales routes, are able to spend more time with their children.

Another Payatas resident, Dexter Gorobat, who became a BOWER early in 2009, was a seaman who had to leave his family behind for six months on each deployment. While his seaman’s earnings were good, he wanted to be with his family and believes that BOW will provide them with a good livelihood

For his part, Mario "Toto" Radin, also a Payatas resident, was a janitor at a supermarket chain, trying to make ends meet on his limited earnings, when the chance to join the BOW program came

"The BOW program started out as work, now it’s more of a mission for us because we have seen how it is transforming participants. They are claiming their dignity and pride and awakening to their potentials," says Jon Antonio, Nestlé Professional’s Regional Sales Manager for Streets, "We asked BOWERS to write down their aspirations. First of all, they want to live in their own decent homes. We hope that in five years, they will achieve that and more dreams."

The well-known saying goes: "Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime." In today’s real world, amid difficult times, the BOW program offers a concrete way to teach a man to fish.