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Nestlé has invested €30 million (approx. $32.97 million) to enhance its cereal beverages production line at its Avanca factory in Portugal, the sole facility of its kind in Europe.

This investment aims to increase production capacity and improve operational efficiency, aligning with the growing demand for nutritious beverage options.

The upgrade involves the installation of advanced machinery designed to boost production capacity by approximately 15%.

A spokesperson for Nestlé highlighted that the new equipment will also facilitate waste reduction, contributing to more sustainable manufacturing processes. "These machines are much quieter than the previous ones, creating a better environment for employees," they said.

Nestlé's cereal beverages, which include brands such as Tofina, Pensal, Bolero and Mokambo, are increasingly popular due to their lack of added sugars and have recently received recognition from the Portuguese Nutrition Association for their nutritional value.

Currently, around 70% of the production from the Avanca facility is exported, with key markets including Europe, Latin America and Asia, particularly Japan.

This investment follows a previous capacity expansion in 2021, which had already doubled production capabilities. With this latest initiative, Nestlé aims to further solidify its position in the cereal beverages market, responding to consumer trends favouring healthier beverage alternatives.

Nestlé has maintained a presence in Portugal since 1923, where it operates two factories and a national distribution centre. The company produced €677 million in sales in the country in 2022 and employs over 2,500 people across its operations.

In its latest financial results for the first half of 2024, Nestlé reported an organic sales increase of 4.5% in its Europe zone, with notable growth in its water and coffee segments.

The company's strategic focus on innovation and sustainability is expected to drive future growth in the competitive food and beverage landscape.

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