Nestlé commits £28m to UK’s Dalston factory

Nestlé UK & Ireland has announced a major investment of £28 million into its Dalston factory, the home of Nescafé Frothy Coffee, marking a significant commitment to advanced manufacturing, operational efficiency, and sustainability within the British food and drink sector.

The multi-million-pound investment is primarily split across two key projects: a state-of-the-art mixing plant and two advanced high-tech packing lines.

The largest portion, a £17.5 million investment, will fund the construction of a new four-storey mixing plant. This facility will integrate the latest equipment and design standards, dramatically improving operational efficiency. Crucially, a new ingredient handling system will reduce heavy lifting by 80% through the use of larger ingredient bags, which also improves recipe accuracy and creates a more supportive environment for factory teams.

An additional £10.7 million is being allocated to replace older machinery with two new packing lines. One of these advanced lines is capable of producing an impressive 60,000 frothy coffee sachets per hour. Beyond speed, these new lines are designed for sustainability, enabling the use of new packaging materials, including MONO PP laminate, which makes the packaging fully recyclable.

Richard Watson, CEO of Nestlé UK & Ireland, highlighted the strategic importance of the funding. “We are very proud of our British manufacturing and this investment reflects the great work being done by our teams to position the UK as a market with significant manufacturing expertise and capability,” he said. “The Dalston investment is a prime example of how we’re investing in the future of the British food and drink industry – modernising our operations and supporting local jobs, driving growth opportunities and being more sustainable.”

The Dalston factory, which has produced Nescafé Frothy Coffee products since 1962, serves as a global Centre of Excellence for the frothy coffee range, manufacturing popular items like Nescafé Cappuccino, Latte, Coffee Mate, and the Starbucks range of Latte products.

The factory’s location in Cumbria utilises sustainable fresh milk sourced locally through a long-standing partnership with First Milk, which focuses on responsible farming and animal welfare. The upgrades are expected to deliver better products to consumers while further reducing the site’s environmental impact.