By 2025, Nestlé intends to invest 8 billion UAH into its commercial activities in Ukraine, including promoting its products in retail networks, along with 1.5 billion UAH for upgrading its factories to enhance product quality.
This was announced by the CEO of the company in Ukraine and Southeast Europe, Alessandro Zanelli, during the "Global Outlook Enduring Change!" event organized by the European Business Association, reported by "Interfax-Ukraine".
"By 2025, the consumer goods sector will continue to grow. However, this year everyone will feel significant pressure on margins. We cannot shift all the burden onto consumers as inflation is already high. We will need to work to create the right narrative for our business model," he stated.
Zanelli advised entrepreneurs to identify the driving forces of their business, understand what creates consumer capacity, and work on improving efficiency.
Discussing Nestlé in Ukraine, he noted that the company aims to expand its presence in Ukraine, planning to invest around 8 billion UAH in promoting consumer goods in retail networks. Additionally, about 1.5 billion UAH will be allocated to enhance the condition of the company's factories.
The CEO of Nestlé in Ukraine added that the company has been delaying the launch of a new factory in the Volyn region for six months due to ongoing air threats, a lack of builders and workforce, but intends to implement the launch in March 2025.
Considering energy supply issues, Zanelli warned that the company anticipates an electricity deficit in the summer, which will force consumers to adjust their purchasing behavior, resulting in significantly smaller purchase volumes. Businesses should take this into account.
Zanelli noted that currently in Ukraine, due to inflation, around 50-55% of purchasing operations are conducted at promotional prices. Consequently, many retail chains encourage manufacturers to conduct more advertising campaigns to generate customer traffic. This is why Nestlé in Ukraine has forecasted corresponding expenses for 2025.
Also read: Which global corporations are simultaneously profiting in Russia and Ukraine
Reminder:
In 2023, the National Agency for Corruption Prevention (NACP) included the Swiss corporation Nestlé in the list of international war sponsors due to its continued operations in Russia, supplying goods and expanding its production base in Russia.
Nestlé is one of the largest companies in the world in the food and beverage sector, present in 187 countries. It offers a wide range of products and services for families and pets, with over 2000 brands.
