Swiss food company Nestle said on Tuesday it would be locally sourcing over 40% of raw materials for a new processing plant in South Africa to offset supply chain challenges and cut costs.
Nestle opened a processing unit for its coffee brand Nescafe on Tuesday in Hamanskraal. Source: Supplied.
Nestle opened a processing unit for its coffee brand Nescafe on Tuesday at its factory in Hammanskraal near the capital Pretoria as it moves to tap into an increasing demand for coffee consumption in South Africa.
Massive slump
Nestle had said last month that it was ramping up local raw material sourcing in Nigeria and other African countries to reduce foreign exchange exposure. Food producers in South Africa have been hit by a combination of long hours of power cuts forcing them to run expensive diesel generators and a massive slump in domestic currency making imports dearer.
Nestle increases local sourcing in South Africa with new processing plant (bizcommunity.com)
