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Friday, 18 April 2014

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Carlisle cappuccino plant boosts Nestle profits

Carlisle's Nestle cappuccino plant contributed to a “strong year” for the firm as it revealed plans to pump £500 million into its UK operations.

Nestle factory photo
Twenty million sachets of drinks, including the cappuccino brand, are produced at Dalston every week

The Swiss-owned food and drink giant said it wants to pump the cash into its Derbyshire coffee plant, its product technology centre at York and a new UK HQ near Gatwick.

Although the business does not publish profit figures for its UK operations, bosses said the region did well in the face of tough economic conditions.

The group’s overall net profits rose 8 per cent to £6.6bn after revenues lifted 7.5 per cent to £58bn.

Nestle produces 20 million sachets of Nescafe cappuccino a year at its Cumbrian factory, at Dalston. The plant exports to 26 countries – 23 in Europe, as well as Canada, Chile and Uruguay.

As well as the cappuccino brand, Dalston makes Coffeemate and the Aero hot chocolate drink.

UK and Ireland chairman and chief executive Paul Grimwood said the £500m UK investment would establish the next generation of “world-class manufacturing facilities”. He added: “This is a real sign of our confidence and commitment in the UK.”

Last year, Nestle saw sales of its Nescafe Dolce Gusto coffee machines rise by 77 per cent, while chocolate multi-packs and confectionery share bags were popular as customers looked to make savings on treats. In Nestle Confectionery, sales of Aero rose 17.6 per cent and Rolo was up 31 per cent.

Mr Grimwood said: “2011 was a strong year for Nestle UK and Ireland despite the difficult economic climate.

“UK shoppers are adapting to challenging times, but still want to provide their families with good quality food and drink, and the occasional luxury.”

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