Nestlé's Major Investment Plans in Ukraine by 2025
By 2025, Nestlé intends to invest 8 billion UAH in its business activities in Ukraine, particularly in marketing its products through retail chains, alongside 1.5 billion UAH for upgrading its factories to enhance product quality.
This was announced by CEO of Nestlé in Ukraine and Southeast Europe, Alessandro Zanelli, at the "Global Outlook Enduring Change!" event organized by the European Business Association, reports "Interfax-Ukraine".
"The consumer goods category will be growing by 2025. However, there will be significant pressure on margins that year. We cannot solely pass costs onto consumers, as inflation in the country is already high. We need to work on creating the right business narrative," he stated.
Zanelli advised entrepreneurs to identify the driving forces of their businesses, understand what drives consumer purchasing power, and work on improving efficiency.
Regarding Nestlé's operations in Ukraine, he noted that the company aims to expand its presence, planning to invest approximately 8 billion UAH in marketing consumer goods through retail chains by 2025. Additionally, about 1.5 billion UAH will be invested in enhancing the state of the company’s factories.
The Nestlé CEO in Ukraine added that the launch of a new factory in the Volyn region has been delayed for six months due to ongoing air threats, a lack of builders, and labor force shortages, but they intend to implement this launch in March 2025.
Considering the energy supply issues, Zanelli warned that the company anticipates a power deficit during the summer, which will force consumers to adjust their purchasing behavior, resulting in significantly smaller purchase volumes. Businesses should take this into account.
Zanelli noted that due to inflation, around 50-55% of purchasing transactions in Ukraine occur at promotional prices. As a result, many retail chains encourage manufacturers to conduct more advertising campaigns to generate visitor traffic. Therefore, Nestlé in Ukraine has budgeted accordingly for 2025.
Also read: Which global corporations are simultaneously profiting in Russia and Ukraine
Reminder:
In 2023, the National Agency for Corruption Prevention (NACP) included the Swiss corporation Nestlé in the list of international war sponsors due to its ongoing operations in Russia, supplying goods, and expanding its Russian production base.
Nestlé is one of the largest companies globally in the food and beverage sector, operating in 187 countries. It offers a wide range of products and services for families and pets, boasting over 2000 brands.
