Nestle SA (VTX:NESN) is betting on Latin America where it plans to invest in setting up new factories and create thousands of new jobs for young people in the region, Reuters reported, citing the company’s Americas head Laurent Freixe.
The move is part of the Switzerland-based food giant’s efforts to tackle social issues and strengthen its position in one of its strongest markets, according to Freixe.
Nestle is in talks with government officials in Chile, Mexico, Peru and Colombia to create 2,900 jobs for young people over three years, Nestle said.
Chile, Mexico, Peru and Colombia are members of the Pacific Alliance trade group.
“Our view on corporate responsibility is that to make it sustainable we have to do it in a way that is embedded in our business model. Integrating young people can help us shape our company at a time of the digital revolution,” Freixe told Reuters in Chilean capital Santiago.
Nestle SA (VTX:NESN) sees growth opportunities in areas such as pet care and coffee in Latin America.
“We have investments in many places. We are finalizing investments in pet food and infant nutrition in Mexico. We are discussing new sites (through the region),” Freixe said.
Nestle Earnings
During the first three months of 2-17, the food giant reported 0.4% increase in sales to $21.1 billion.
The company’s organic sales growth rose by 2.3% in the quarter, thanks to the growth in Asia.
“Organic growth of 2.3% this quarter is within our full-year guidance range. The leap year comparison and other seasonal effects made the start of this year particularly challenging. We were encouraged by the growth in Asia and the resilience of consumer spending in Europe. Consumer demand in the Americas remained soft. Our pricing improved moderately. We confirm our 2017 guidance and have made good progress with our growth and efficiency projects to position our company for enhanced value creation,” Nestlé CEO Mark Schneider said in a statement.
Shares of Nestle SA (VTX:NESN) were closed up 0.12% on Thursday. The stock is up more than 13% so far this year.