In 2025, Nestlé aims to invest 8 billion UAH in enhancing its business activities in Ukraine, particularly in promoting its products within retail networks, alongside 1.5 billion UAH dedicated to upgrading its factories to improve product quality.
This was announced by Alessandro Zanelli, CEO of the company in Ukraine and Southeast Europe, during the "Global Outlook Enduring Change!" event organized by the European Business Association, as reported by Interfax-Ukraine.
"By 2025, the consumer goods category will continue to grow. However, in 2025, we will face significant margin pressure. We cannot place all the burden on consumers as inflation is already high. We must work to create the right narrative for our business model," he stated.
Zanelli advised entrepreneurs to identify the driving forces behind their business, understand what drives consumer purchasing power, and focus on enhancing efficiency.
Discussing Nestlé's presence in Ukraine, he noted that the company intends to expand its footprint in the country, planning to invest approximately 8 billion UAH in marketing consumer goods in retail networks, as well as 1.5 billion UAH in improving its factories.
The CEO of Nestlé in Ukraine added that the company has delayed the launch of a new factory in the Volyn region for six months due to ongoing air threats, a shortage of construction workers, and labor issues, but aims to launch it in March 2025.
Regarding energy supply problems, Zanelli warned that the company anticipates an electricity deficit in the summer, which will compel consumers to adjust their purchasing behavior, leading to significantly smaller purchase quantities. Businesses should take this into account.
Zanelli highlighted that currently, due to inflation, about 50-55% of purchases in Ukraine are made at promotional prices. Many retail networks are encouraging manufacturers to conduct more advertising campaigns to generate visitor traffic. This is why Nestlé has forecasted relevant expenditures for 2025.
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Reminder:
In 2023, the National Agency on Corruption Prevention (NACP) included the Swiss corporation Nestlé in the list of international war sponsors for continuing operations in Russia, supplying goods, and expanding its Russian manufacturing base.
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.
