Nestlé is injecting $195m into the expansion of its Purina pet-food processing facility in the US state of Wisconsin.
An additional 35,000 square feet will be added to the facility in Jefferson.
The investment is expected to boost the production of Purina wet pet-food brands, such as Fancy Feast, Elegant Medley, Friskies and Pro Plan by nearly 50%.
Around 100 new jobs will also be created at the new site.
Local government agency the Wisconsin Economic Development Corporation (WEDC) is supporting the project with $1.7m in “business development tax credits”, a joint statement with Nestlé Purina PetCare read.
The sum will be granted to the Swiss food giant over a five-year period, depending on “the number of jobs created” by Nestlé, “and the amount of capital investment during that period”.
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By GlobalData
Nestlé’s Jefferson project is part of its $2bn investment into Purina’s overall “capital expansion projects” between 2020 and 2025, which aim to “enhance its pet food manufacturing footprint”.
Just Food has asked Nestlé whether the $2bn sum is solely going towards its US pet food brands.
In 2021, the company revealed plans to invest in a $182m expansion project on its Purina factory in King William, Virginia, which was completed last July. In 2020 it also announced a $450m investment in the building of a new pet food facility in North Carolina, which opened in March of this year.
Nestlé also scooped up a US pet treats facility from Red Collar Pet Foods in Miami, Oklahoma in February 2023. The financial details of the deal were not disclosed.
The company operates 23 pet food plants in the US.
Last October, the Felix cat food producer said it intended to inject around Ft90bn ($246m) into its European pet food unit in Hungary.
Purina chief technical officer Nolan Terry said the investment in Jefferson “deepens our roots in the community”.
He added: “We remain focused on safety, quality and sustainability in our operations and appreciate the state and local partners who have supported our continued growth.”
The Purina site in Jefferson has been in operation since 1910. Around 250 employees currently work at the site.
Earlier this week, Nestlé reported its financial results for the first quarter of 2024. The company said its Purina PetCare business was “the largest contributor” to its overall organic growth.
On an organic basis, Nestlé’s sales rose 1.4%, with pricing up 3.4%. The group’s real internal growth (RIG) measure, which strips out pricing from organic growth to reflect changes in volumes, was down 2%.
In North America, Nestlé reported “broad-based demand” for its Purina PetCare business, which it again described as “the largest growth contributor” for its business in the region, without providing detailed figures.
