Beverage Industry

Kraft invests $200 million to expand in Brazil

May 3, 2011

Kraft Foods, Northfield, Ill., opened its new $80 million manufacturing facility in Pernambuco, Brazil. The plant is part of an approximately $200 million investment Kraft plans to make in Brazil during a two year period.

“Brazil is one of 10 priority developing markets where we’re making big bets,” said Sanjay Khosla, president of Kraft Foods developing markets, in a statement. “Today, we’re among the fastest growing consumer goods companies in markets like Brazil, India and China. We’re excited to build on what’s working by making our biggest investment in Brazil in more than 10 years.”

The Pernambuco plant will produce powdered beverages, such as Tang and Fresh, and chocolate, including Cadbury-branded products. The 270,000-square-foot facility is the company’s latest investment in Brazil and positions the company for future growth in the fast-growing north-northeast portion of the country, it said. The plant will employ more than 600 employees with 200 more to be added when a biscuit line is installed next year.

The plant in Pernambuco features prismatic skylights, solar lighting, water heating, a waste water treatment plant, low-emission equipment and eco-paved parking lots. The company is seeking Leadership in Energy and Environmental Design recognition for the plant. If attained, it will be Kraft’s first certified plant in a developing market, the company said.

Kraft also invested $2.2 million to help local children live healthier lives. Prior to groundbreaking of the new plant, the company joined with INMED Partnerships for Children to plant vegetable gardens in more than 300 public schools in Pernambuco. The gardens will provide fresh produce for school lunches and educate 100,000 children in Brazil about healthy eating, Kraft said.