Nestlé Invests 520 Million in a Pet Food Plant in Italy

Here's what it's all about

• Nestlé is investing approximately 520 million Swiss francs in a new pet food plant in northern Italy.
• Starting in 2029, the company plans to produce wet food for dogs and cats, as well as provide logistics services.
• The company is thus capitalizing on the booming market for premium pet food.

Summary created with

Nestlé is expanding its pet food business and investing approximately 520 million Swiss francs in a plant with a logistics center in northern Italy. Starting in 2029, the facility will serve as a hub for wet food for dogs and cats, as well as logistics services for Purina and other Nestlé brands.

The new plant in Mantua, northern Italy, is expected to bring the number of Purina production sites in Europe to 15 and strengthen supply chains, the food company announced on Monday. At the same time, Nestlé expects to achieve more efficient logistics, shorter transport routes, and reductions in emissions, water consumption, and energy use.

The project had already been approved by the European Commission last year. Italy is supporting the construction with 60 million euros in state aid. According to the EU, the funding is intended to strengthen a more competitive and resilient agricultural sector, improve food security, support environmental and climate goals, and promote the economic development of rural regions.

Under CEO Philipp Navratil, Petcare is one of the Group’s four strategic growth areas. According to Nestlé, the premium wet food segment—particularly for cats—is growing by about 8 percent. There are now approximately 111 million cats and 91 million dogs in Europe. Pet owners are also spending more and more on premium products. The European pet food market has an estimated volume of just under 30 billion Swiss francs.

In Europe, this division now accounts for 29 percent of Nestlé’s sales; worldwide, the figure is 21 percent. Earlier this year, Nestlé had already announced the construction of a pet food plant in Brazil at a cost of 370 million Swiss francs.