NestlÚ inks co-manufacturing agreement with Dairy Industries Jamaica Ltd

NestlÚ inks co-manufacturing agreement with Dairy Industries Jamaica Ltd

Wednesday, September 23, 2020

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NestlÚ Jamaica Limited (NJL) has announced its re-entry into the higly competitive powdered milks market under a co-manufacturing deal with Dairy Industries Jamaica Limited (DIJL).

The agreement has formalised DIJL's production of NestlÚ Everyday milk powder in its production facility in Kingston since March 2020.

“We are extremely happy to be able to launch another innovation that will satisfy the needs of the Jamaican market,” a company release quotes NestlÚ Jamaica's Country Manager Daniel Caron.

“We wanted to bring something that was value-added to the table — an instant fortified milk powder to satisfy the milk needs of consumers in Jamaica at an affordable price. This new partnership is just another example of the commitment to Jamaica [that] NestlÚ has demonstrated over the last 80 years, which has included investing millions of dollars in local operations, innovations and renovations,” Caron said.

The company's aim, he said, is to build dairy as a strategic growth driver for local business.

“The local agreement with Dairy Industries complements our liquid fresh Jamaican milk portfolio and our sweetened condensed milk,” Caron said, adding that the new product is fortified with added vitamins and minerals designed for the entire family, thus the name 'NestlÚ Everyday'.

“With this partnership we needed little investment as the production facility and partnership were already in place. With an investment of US$100,000 we were in business,” Caron explained.

He said the partnership will secure local employment and local marketing investment, and solidifies NestlÚ's commitment to Jamaican manufacturing and job creation.

“Our short-term marketing investment behind the new categories will be approximately US$500,000. We are anticipating sales of US$5 million from these new initiatives in the local market.”

Dairy Industry's General Manager Radcliffe Walker lauded the partnership with NestlÚ, saying that the innovation will give consumers better value for their money.

“Co-manufacturing is a great opportunity for DIJL. The increased product output will enhance our production efficiency and increase revenues and associated earnings for our team members,” Walker said.

“Our state-of-the-art facility has really revolutionised our ability to produce and maintain the highest product quality. We are excited to begin this new partnership to produce NestlÚ Everyday and I look forward to its success,” added Walker.

Dairy Industries is a joint venture between GraceKennedy Limited and Fonterra, New Zealand. In 1995 the company attained ISO 9001 certification, and is currently certified under the FSSC 22000:2017 standard.

Frank James, CEO of GraceKennedy Foods — Domestic, also commented on the new agreement between DIJL and NJL.

“Manufacturing plays such a key role in our nation's economic growth and development, providing employment for thousands of Jamaicans and reducing our dependence on imports,” he said. “The impact of COVID-19 on the Jamaican economy has demonstrated how important it is that we invest in local manufacturing capacity. The cementing of this partnership between DIJL and NestlÚ at such a critical time not only demonstrates confidence in our manufacturing capabilities, but also our commitment to Jamaican manufacturing as a whole.”

NestlÚ explained that its Everyday milk powder is widely available at wholesales, supermarkets, and corner shops islandwide. The company also said that small businesses can purchase the product from its head office and Distribution Centre at Ferry in St Catherine.

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