Nestle to decide next month on future of yogurt production at Slupsk

The management of Nestle Polska is considering the future of the company's S lupsk factory, which produces the Farma brand of yogurt for the local market . Nestle plans either to make the plant a supplier of milk-based products fo r the whole Polish market, or to abandon yogurt production altogether. Expla ining the company's dilemma, Nestle Polska CEO Alfred Kaelin said, "I would prefer to expand our activities and not end the production of yogurt. But th e investment might be very risky." He pointed out that the market for milk-b ased products is very competitive, with a major part taken by Danone and Bak oma. "In order to enter it we have to have a product, a strategy and huge fi nancial resources. On the other hand, the fact that there are only one or tw o serious competitors means there is a chance to create a niche for ourselve s. I think the final decision will be made in a month's time," Kaelin said. If the company decides that its chances against the two market giants are po or, the Slupsk plant will focus instead on producing baby food and coffee. (Puls Biznesu, p. 9) A.K.