Following the news that Nestle has unveiled the world’s largest Milo production unit in Malaysia with an investment of more than US$21m to cater to the growing demand in domestic and neighboring countries across the Asia-Pacific (APAC) region,

Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view:

“The Chembong factory in Negeri Sembilan has been upgraded in terms of automation and IT infrastructure to enhance its production capacity by 30% and optimize operations. The move will help the company to streamline its international sales in the region and equip to meet the growing demand for Milo in bigger markets such as China, Singapore, Indonesia and Thailand.

“As per GlobalData estimates, the consumption of ‘hot drinks’ (except tea and coffee) is highest in China, followed by India, the Philippines and Indonesia in the APAC region. In addition, the per capita consumption of such beverages is among the highest in Malaysia, Thailand and Singapore. Therefore, the expansion of Milo production is in line with the increasing demand in the entire South Asian region.”