Brazil: Nestle Investing in Organic Food Roll-Out

Nestle SA has inaugurated a new quality control lab outside São Paulo, which the company said would help it expand into organic products in Brazil, and potentially grow to serve all of Latin America and beyond.

In February, Nestle said it was launching its first organic food line in Brazil, as part of the world’s largest food company’s global push to capture growing interest in healthy and organic products.

In an interview, Nestle executives said the new lab, which cost Br $23 million (US$6.95 million), would aid in the roll-out of that initiative.

“When you make a commitment to the consumer that it’s organic, it has to be organic. You have to make sure it’s pesticide free,” said Fabien Robert, Nestle’s head of quality for the Americas, adding that the new facility could enable the firm to do more testing for pesticides and genetically modified organisms.

While the new lab, in the city of Araras, will only represent a 10 percent increase in analytical capacity over the existing Sao Paulo lab that it will replace, executives said it would likely expand.

The unit is set to serve Brazil, as well as Colombia, Venezuela, Peru, Chile, and Argentina, but could grow to cover all of Latin America, and occasionally assist Nestle’s other regions, such as Africa, Robert said.

Ecovia Intelligence Comment
The Brazilian organic food market is growing at a fast rate. Research by Organis shows that about 15 percent of the population are now buying organic foods. Nestle is one of a growing number of food companies looking to capitalise on growing consumer demand for health & organic foods.

An update on the global organic foods market is regularly be given in the Sustainable Foods Summit. The next Latin American edition will be hosted in São Paulo on 29-30th November. Other editions in this international series will take place in Europe (7-8 June), Asia-Pacific (Singapore, 4-5th September), and North America (San Francisco, 16-17 January 2019). More information is available from www.sustainablefoodssummit.com

Source: Business Insider / Ecovia Intelligence (23/03)