Nestlé announced a three-pronged investment in South Africa yesterday of R505-million, half to be spent constructing a factory to make Milo and Cheerio cereals that have proved a hit with local consumers.
Within a year of being launched two years ago, imports of both brands had cornered 10 percent of the South African cereal market, Nestlé South Africa spokesman Ravi Pillay said yesterday. “Demand has been so great (as to) justify setting up a factory,” he said.
The cereal factory, to be built on 16 000m² in Babelegi, Pretoria, at a cost of R244m, would employ 70 permanent staff and 100 workers indirectly in the construction phase. The site is adjacent to Nestlé’s Cremora factory, enabling shared services.
Another 160 permanent jobs and 200 construction jobs are expected at an adjacent Maggi factory, also under construction at a cost of R155m to produce noodles and other unspecified brand products.
Pillay would not disclose the full range of Maggi products, citing competitive reasons, “safe to say they will be within our strategy of popularly positioned products”, affordable in price and size.