By JUSTIN SCHNEIDER, Herald Bulletin
The announcement Monday of Nestle Corp.’s intention to build its largest U.S. plant in Anderson appears to be a windfall for the city.
But it’s also a good deal for Nestle.
Construction of the 880,000-square-foot plant will allow the corporation to consolidate operations at seven other facilities scattered throughout the country.
Pam Krebs, manager in the division of brand affairs for Nestle, said Nestle uses independent dairy partners in several states to create Nesquik Ready-To-Drink flavored milk and Coffee-Mate creamers, the two products that will be produced in Anderson.
“Right now, they are produced with a bunch of co-manufacturers in approximately seven different facilities across the country,” Krebs said. “What this allows us to do is expand our production capacity. Because it’s one central location, we can take advantage of that.”
The company will maintain relationships with independent partners, while moving production of Nesquik and Coffee-Mate to Anderson.
Even before the name Nestle was known, possible investors were asking for 100 acres of land near rail lines and an interstate.
Krebs said the Anderson facility will be geared around high-speed bottling equipment, but Nestle is staying tight-lipped about the amount of Nesquik and Coffee-Mate that will be produced.
“They know what the equipment and the layout will look like,” Krebs said. “But I don’t know that we’re going to be announcing that information for competitive reasons. It’s never a good idea to tell your competition what you plan to produce.”
Krebs said Nestle should have a rendering of the facility by the time of the August groundbreaking.
Nestle’s beverage division grossed $3 billion in sales in 2005. Other beverage plants are located in Waverly, Iowa, Jacksonville, Ill., and Freehold, N.J.
Art Chasey, assistant director for economic development and tourism for Monmouth County, N.J., said Nestle has become a fixture in Freehold.
“I can tell you that they’ve been a good citizen,” he said. “They’ve been in the town for quite a while.”
Chasey has been in the Freehold area for more than 10 years and the Nestle plant has been around even longer. The facility now produces exclusively instant coffee.
“It’s amazing, when a company is there that long and they’re not a problem, you just sort of lost track of them,” Chasey said. “But we have also done some things to keep them there, that’s the other issue we’re dealing with.”
According to the most recent numbers, Chasey said, the Freehold plant employed around 500 people and Nestle recently put an addition on the plant.
Freehold, located equidistant between Philadelphia and New York City, is about six miles from the Atlantic Ocean and has a population of fewer than 6,000 people.
Nestle plans to build near the Flagship Enterprise Center on Anderson’s south side, adjacent to Exit 22 along Interstate 69. The plant is expected to create about 300 jobs for area workers once construction is complete in 2008.
The city of Anderson offered around $26 million in economic incentives, beating out hundreds of competing communities. Nestle is the world’s largest food company.