Nestle to invest US$1.9b in Saudi Arabia over next decade
NESTLE will invest 7 billion Saudi riyals (S$2.55 billion) in Saudi Arabia in the coming 10 years, starting with a plant to make infant products and ready-to-drink coffee, as the kingdom looks to attract more foreign investments to diversify its oil-dependent economy.
The plant, set to open in 2025 with an initial investment of 375 million riyals, will serve Saudi Arabia and export markets in the Middle East and North Africa, the Swiss food giant said in a statement. The investments over the next decade are expected to create 3,500 direct and indirect jobs.
“Nestle’s investments will contribute to food security and the development of local businesses, fuel local innovation, and create jobs for youth and professionals,” Khalid Al-Falih, Saudi Arabia’s Minister of Investment in Saudi Arabia, said in the statement.
Saudi Arabia has set a target of attracting around US$100 billion a year of foreign direct investment by 2030 as it looks to diversify its economy. Yet, most of the foreign investments in the country has been into the oil industry.
Of the nearly US$20 billion of FDI last year, about US$12 billion was related to an oil pipeline deal by state-owned oil producer Saudi Aramco.
Vegetarian foie gras
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Separately, Nestle announced that it is starting to sell vegan foie gras in Switzerland and Spain to ease the conscience of gourmands worried about animal welfare this festive season.
Traditionally, the pâté is made by force-feeding ducks or geese through a tube to make their livers fatty. The animals can also be tricked into fattening themselves up voluntarily, but they still need to be obese for their livers to make the rich and greasy paste.
Culinary purists, especially in France where the foie gras label is used only if the birds were force-fed, may baulk at Nestle’s “Garden Gourmet Voie Gras”, which combines soy with flavourings like miso, truffle oil, and sea salt. But a backlash against the delicacy, and falling consumption, suggests tastes are changing as consumers prioritise ethics and health.
At 7.95 Swiss francs (S$11.58) for a six-serving 180-gram jar, the vegan option is cheaper than a traditional duck liver foie gras, and slightly healthier, Nestle said.
The launch from the world’s biggest food company is a mainstream push for consumers to accept cruelty-free revamps of very traditional meat products. Smaller companies are already offering meat-free alternatives to foie gras in Switzerland, which imports around 200 metric tons of the stuff each year. The Voie Gras product will be sold in 140 branches of Swiss retailer Coop, which hasn’t sold traditional foie gras in two decades.
Foie gras production is banned in many countries, including Switzerland and the UK. Campaigners have also been pushing for the imports of the controversial delicacy to stop.
Animal rights groups say female ducklings are often killed or left to die because only males are used to produce foie gras. BLOOMBERG
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