Nestlé USA, a subsidiary of Nestlé S.A., will transition its corporate headquarters to Arlington County, Virginia starting later this year. The move marks an important milestone in the company’s history and signals Nestlé’s commitment to future investment and growth in the U.S. With the move, the company also demonstrates its leadership in responding to the rapid pace of change in the food industry with a new, more efficient structure and closer proximity to the bulk of its business and stakeholders. The company expects to bring approximately 750 jobs to the Washington, D.C. area with this transition.
“With the food and beverage landscape continuing to transform at a rapid pace, Nestlé has been innovating and making strategic changes to the business over the past five years. This move is the next step in our evolution,” said Paul Grimwood, Chairman and CEO of Nestlé USA. “We carefully considered a number of options and Arlington hits all the marks. Not only is it attractive to our current employees while offering a great talent pool for the future, but this location allows us to be closer to our business operations, our customers and other important stakeholders.”
Currently, 75 percent of Nestlé USA’s factories and 85 percent of its top customers are located in the eastern half of the United States. In addition, 80 percent of the company’s products are sold east of the Mississippi River. With a majority of key regulatory groups and non-government organizations pertinent to the business located in or near the Washington, D.C. area, the move will further facilitate important conversations about bringing the best foods and beverages to U.S. consumers.
Nestlé worked closely with Virginia leaders to confirm the move to 1812 North Moore Street in Rosslyn, Virginia, part of Arlington County. The tallest building in the metropolitan D.C. area, the location will become home to Nestlé USA’s corporate functions, its Beverage and Confections & Global Foods divisions, as well as its expanding eBusiness team, Center for Marketing Excellence and team of nutrition experts. The move will commence later this year, with completion expected by the end of 2018.
In addition to relocating its U.S. corporate headquarters, Nestle USA will move its Technical & Production organization and Supply Chain teams to join the Nestlé Prepared Foods, Pizza, Baking and Professional businesses in Solon, Ohio. The company has established Solon as its Center of Excellence for its frozen and chilled foods businesses, with major brands that lead their categories, and as the site for its $50 million investment in the global Nestlé Development Center, dedicated to transforming the way the world enjoys frozen and chilled foods.
While transitioning Nestlé USA from its current home in Glendale, California, Nestlé remains committed to California, with approximately 5,500 employees across the state and more than $800 million in goods and services purchased each year. Businesses including Nestlé Dreyer’s Ice Cream, Nestlé Purina PetCare and Nestlé Waters North America maintain nine manufacturing facilities in California.
“Nestlé is proud of our American heritage. Many of our brands have been staples in Americans’ kitchens for decades, from evaporated milk and chocolate to coffee and tea to prepared foods and pizza,” said Grimwood. “With 87 manufacturing facilities across the U.S., we source ingredients and make our foods and beverages as close to the consumer as possible. This is an integral element of our Creating Shared Value strategy. Our growth over the past 150 years has enabled us to improve the lives of millions of people through the products and services we provide, employment opportunities, our supplier networks and the economic contributions we make here in the U.S.”
Additionally, Nestlé’s U.S. IT organization will centralize in St. Louis, MO, which is also home to Nestlé Purina PetCare’s U.S. headquarters, to drive efficiency across Nestlé’s U.S. operations. As the company looks to the future, it will continue to demonstrate its commitment to the United States as a key growth market.
Nestlé in the U.S. consists of eight main businesses: Nestlé USA, Nestlé Purina PetCare Company, Nestlé Waters North America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Skin Health and Nestlé Health Science. Together, these companies operate in more than 120 locations in 47 states and employ over 51,000 people. In the U.S., Nestlé product sales topped $26 billion in 2015, making it the largest Nestlé market in the world.