US division of the food and beverage business from Switzerland, Nestlé (VTX:NESN) has decided to move their headquarters to Arlington in Virginia. It will be located in the Rosslyn area, which is not doing well economically at this time. There are many office vacancies in the region. Nestlé USA makes Lean Cuisine, Baby Ruth, Häagen-Dazs, and many other mass brands.
Nestlé USA is part of the global business that is based out of Switzerland. The move is expected to create 750 jobs. Currently, their headquarters is located at Glendale in California.
It has been under the spotlight there recently for bottling plant water even as the state is passing through a massive drought. In 2015, the business that offers nine water brands including Arrowhead took away 36 million gallons of water from a natural forest in the state to bottle and sell. This drew huge public criticism and lawsuits.
Nestlé Will Occupy the Tallest Building in Arlington
The tallest building at Arlington in Virginia, 1812 N. Moore St., will be the new home of Nestlé USA. Though a landmark in the area, but the building has remained vacant since it was completed four years back. However, Nestlé was interested because the area has many lobbyists, regulators, and lawmakers. Plus, the county and state are also offering them more than $16 million subsidies.
Chief executive and chairman of Nestlé USA Paul Grimwood said, “Frankly, this brings us closer to the heartbeat of our industry. It allows us to collaborate not just with consumers but also with other important stakeholders in Washington and on Capitol Hill”. Lisa Gibby, a spokeswoman of Nestlé says, “Relocation of the Nestlé USA headquarters was under consideration before the election cycle. We made the decision to come to Washington independent of the election of the president”.
How Arlington Was Able to Beat the Competition
But it took Virginia a lot of efforts to convince Nestlé (VTX:NESN). Officials of the state have been wooing the business for more than a year according to the Governor Terry McAuliffe. According to reports, the company was considering 19 other locations all over the country, but by last October, they had narrowed it down to just two – Atlanta, and Rosslyn. That changes eventually because of the incentives the state was offering, easy transportation access, and the presence of good schools in Arlington.
With this move, there will now be three big candy makers located in the Mid-Atlantic region. Hershey is based in Pennsylvania, and Mars that makes M&M’s, Milky Way, and Snickers, is based at McLean in Virginia.