Nestlé to invest US$383M in Brazil nutrition business
The investment includes a new infant formula plant in Minas Gerais, upgrades to an existing nutrition facility and a 15% increase in whey production.
BRAZIL – Nestlé will invest CHF 310 million (US$383 million) in its nutrition and health business in Brazil through 2028, including CHF 94 million (US$116.2 million) to build a new infant formula manufacturing facility in Ituiutaba, Minas Gerais.
The new plant will produce infant formula for the Brazilian market and for export, adding manufacturing capacity in one of Nestlé’s strategically important nutrition markets.
The Ituiutaba facility is expected to begin operations in the second quarter of 2028 and will create approximately 100 jobs. It will be Nestlé’s second infant nutrition factory in Brazil and will feature digital and automated technologies designed to improve manufacturing efficiency, product quality and food safety.
Jeff Hamilton, CEO of Nestlé Zone Americas, said Brazil remains strategically important to the company’s nutrition business.
“Nutrition is one of Nestlé’s key categories globally and today accounts for around 20% of Group sales,” Hamilton said. “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.”
The wider investment programme will include upgrades to Nestlé’s nutrition and health factory in Araçatuba, São Paulo. The facility serves as the company’s main Brazilian hub for infant, medical and adult nutrition products.
Nestlé will also expand production of key ingredients as part of the programme. Whey output is expected to increase by 15% by 2029, strengthening local ingredient supply for the company’s nutrition products.
The company said the investment will increase production capacity closer to major consumer markets while creating additional export capacity. Brazil is one of Nestlé’s most important markets globally, with the company identifying further potential in infant and broader nutrition categories.
The Ituiutaba facility’s automated and digital manufacturing systems will support production operations, while Nestlé said the technologies are intended to maintain standards for product quality and food safety.
The project is also expected to contribute to regional economic development through new employment, increased production and investment in the local supply chain.
The investment comes as Nestlé continues to reshape its global portfolio. Earlier this week, the company signed an agreement to sell its mainstream vitamins and supplements business to US private equity firm Yellow Wood Partners for US$1 billion.
The planned divestment forms part of Nestlé’s broader portfolio streamlining efforts, while the Brazil investment will expand its manufacturing footprint in nutrition and health products.
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