Nestle S.A.’s American subsidiary, Nestle USA, is relocating its corporate headquarters from Glendale, CA to a site in Rosslyn, VA, just outside of Washington D.C., the company announced Wednesday. 750 jobs will move to the D.C. area as part of the transition slated to begin this year.
“With the food and beverage landscape continuing to transform at a rapid pace, Nestle 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 Nestle USA Chairman and Chief Executive Officer Paul Grimwood in a statement.
Grimwood said the Virginia site was selected because of its proximity to the company’s existing business operations, customers, and stakeholders, and the existence of a large talent pool in the area. The transition begins this year, drawing to an expected completion by the end of 2018.
75% of Nestle USA’s manufacturing facilities and 85% of its major customers are situated in the eastern half of America, the company said, also noting that 80% of its sales come from east of the Mississippi River. Proximity to Washington D.C. was also a major factor in the move.
“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,” the company stated in its release.
Nine Nestle USA manufacturing plants in California will remain open. The largest building in the Washington D.C. area will house Nestle USA’s corporate offices, the Center for Marketing Excellence, a group of nutrition experts, the Beverages and Confections and Global Foods divisions, and its eBusiness unit.
The company’s Technical & Production organization and Supply Chain teams are being moved to Solon, OH to join Nestle USA’s Prepared Foods, Pizza, Baking, and Professional businesses. Its IT organization is moving to St. Louis, MO, also the home of Nestle Purina PetCare’s U.S. headquarters, “to drive efficiency across Nestle’s U.S. operations,” the company said.