With a leading share in the coffee market, which on the retail level reaches around 57% in terms of volume, Nestle continues to grow, having launched new investments in the Loumidis factory in Oinophyta.
The aim of the investment plan is, on the one hand, to balance the energy costs, which have doubled this year for Nestle’s Greek subsidiary, and on the other hand, to expand the raw material storage infrastructure.
Investments of 3 million euros
In particular, as the president and CEO of Nestlé Hellas, Nikos Emmanouilidis, said at an event held yesterday at the company’s coffee factory in Oinophyta, the company is proceeding with an investment program of 3 million euros, which will be added to the investments of 28 million euros which have been realized in the last decade. Of these 13 million euros were invested in the last five years.
The new investments, planned for 2023, concern the creation of a warehouse at the Oinofyta facilities with a storage capacity of 2,000 tons of coffee, as well as the installation of photovoltaic panels in the factory area. The investment in the warehouse is estimated at 2 million euros and that in energy at 1 million euros.
At the same time and despite the adversities (increases in raw material, transportation and energy costs), the company did not freeze the launching of new products, and in fact it has enlisted new products on the market that cover new consumer needs.
Consumption shift
As regards coffee consumption, according to the head of the company, there is a shift in sales from the supermarket to the HoReCa sector and this as consumers have largely returned to their workplaces and the tourism channel has fully opened.
Price hikes
According to Mr. Emmanouilidis, the company through promotional actions seeks to contain the volume reductions.
Nestlé Hellas proceeded with a weighted average price increase of 3% in all coffee categories, when, as its head explained, “price increases in the market range at 4%”. “The 3% appreciation is not nominal since it also includes promotional actions,” he clarified.
Coffee and Sustainable Development
The above was mentioned on the sidelines of the event held by Nestlé on the occasion of the Coffee Day celebration. At the event, the company’s initiatives were presented, which create value for people and the future, focusing on sustainability, entrepreneurship and innovation. The specific initiatives concern the entire range of the company’s activities and its products with actions that focus on the recycling or reuse of packaging, the responsible origin of coffee, and its commitment to a zero balance of greenhouse gas emissions, by 2050.
The president and CEO of Nestlé Hellas, Nikos Emmanouilidis, referred to sustainability as the driving force behind the company’s entrepreneurship and innovation: “We plan and build for the long term, act with commitment to our goals and combine our global know-how with our local resources so as to create mutual benefit for society.
At the same time, the manager of the Oinophyta Coffee factory, Sofocles Arvanitidis, spoke about the production activity of the factory and the sustainable practices applied, noting that between 2018 and 2021, Nestle Hellas achieved an 80% reduction in carbon dioxide emissions. As he said plans for 2023 include the creation of a photovoltaic park with the aim of further utilizing alternative energy sources.
Latest News
FT: Greece’s Economic Rebound a Balance of Growth and Poverty
Eurostat data revealed a significant 10.8% drop in Greek public debt relative to GDP in 2023, alongside a 2% economic expansion, outpacing Germany's performance.
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction
Greek 30Y Bond Issue Oversubscribed by 11 Times
Very high demand pushed down the coupon's interest rate to 4.125%
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses